E20 for new, E10 for old? CEA Nageswaran suggests two-fuel option

Chief Economic Adviser V Anantha Nageswaran has suggested bringing E10 petrol back to fuel pumps for older vehicles while continuing E20 for newer vehicles designed to run on the higher ethanol blend.

The proposal comes amid an ongoing debate over E20 petrol, with owners of older vehicles raising concerns over mileage, fuel-system compatibility and long-term maintenance. Nageswaran made the suggestion in a column for The Indian Express, co-authored with Akash Poojari, a consultant with the Department of Economic Affairs.

The proposal does not seek a rollback of India's ethanol-blending programme. Instead, it calls for different fuel options based on the age and design of vehicles.

What Nageswaran has proposed

Under the suggestion, E10 petrol could be made available alongside E20, allowing owners of older vehicles to choose the lower ethanol blend.

“Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern," Nageswaran wrote in The Indian Express.

Nageswaran and Poojari estimate that India has around 75-80 million older two-wheelers built for E10. Many older vehicles, particularly those with carburettor-based engines, were not designed with higher ethanol concentrations in mind.

The CEA has also pointed out that ethanol has lower energy content than petrol, meaning higher blending can affect fuel economy. He estimates the energy-related penalty from E20 at around 6-7 per cent.

The concern for older vehicles, however, goes beyond mileage. Carburettor-equipped engines may not automatically adjust to the additional oxygen associated with ethanol, while older rubber seals and other fuel-system components may not have been designed for higher ethanol concentrations.

Why E20 remains at the centre of the debate

E20 petrol contains 20 per cent ethanol and 80 per cent petrol. India has steadily increased ethanol blending as part of its efforts to reduce crude oil imports and fuel import dependence while supporting domestic agriculture.

From April 2026, petrol sold across India has been mandated to contain 20 per cent ethanol. The government has maintained that E20 has undergone extensive testing and has rejected concerns about widespread engine damage.

However, older vehicle owners have continued to raise concerns about reduced mileage and possible effects on fuel-system components. The issue has also reached the Supreme Court, which dismissed a challenge to the nationwide E20 rollout in 2025.

CEA flags food-versus-fuel concerns

Nageswaran's argument also extends beyond the immediate E10-E20 debate. He and Poojari have called for closer examination of the consequences of increasing ethanol blending beyond 20 per cent.

Higher blending targets would require more feedstock, raising questions over agricultural land, water use and the diversion of crops towards fuel production.

The authors have therefore called for a detailed assessment of the food-versus-fuel trade-off before India moves towards higher ethanol-blending targets.