India should bring back E10 petrol alongside E20: Chief Economic Adviser

India should bring back a petrol variant with a lower ethanol blend and offer it alongside E20, Chief Economic Adviser V Anantha Nageswaran has said.

Nageswaran is the first senior government official to publicly call for wider fuel options amid growing consumer concerns over the policy of making E20 the only petrol variant available at fuel stations.

E20, which contains 20 per cent ethanol, was rolled out last year. Since April 1, it has been the only fuel available for sale at gas stations across India. The move is part of Prime Minister Narendra Modi’s plans to reduce oil imports and help curb pollution.

The policy has, however, led to concerns about vehicle performance and possible damage to auto parts. Many car owners have also raised their concerns on social media and called for lower ethanol-blended petrol to be made available.

“Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern,” Nageswaran said in an opinion piece in the Indian Express newspaper on Monday.

The article was co-authored by Akash Poojari, a consultant in India’s Department of Economic Affairs. The two authors said their views were personal.

It is rare for senior Indian government officials to publicly disagree with a government position.

A spokesperson for India’s oil ministry did not immediately respond to a Reuters request for comment.

The government said last month that there was no proposal to bring back lower-blended petrol variants such as E0 or E10.

Concerns over E20 and older vehicles

The opinion piece comes after a Reuters report last week said top automakers had privately discussed concerns about E20 contamination.

The discussions took place days before an industry lobby sent a letter of complaint to the government. The letter was later withdrawn.

Nageswaran and Poojari said the available evidence does not support fears that E20 causes damage to engines. However, they pointed to concerns about other effects of E20 on older vehicles.

“India has roughly 75 to 80 million older two-wheelers … older rubber seals that are not rated for ethanol are a separate problem … retrofitting those seals… that way will take years,” the opinion piece said.

The authors said New Delhi should “protect the existing fleet while the retrofit programme catches up”.

The proposal would allow motorists to choose between E10 and E20 petrol while older vehicles are gradually adapted to higher ethanol blends.

Key points:

• E20 petrol contains 20 per cent ethanol.
• E20 has been the only fuel available at gas stations across India since April 1.
• The policy is aimed at reducing oil imports and helping curb pollution.
• Chief Economic Adviser V Anantha Nageswaran has backed restoring E10 alongside E20.
• The government said last month that there was no proposal to revert to E0 or E10 petrol.
• The opinion piece said older vehicles remain a concern because of ethanol-sensitive rubber seals.
• India has roughly 75 to 80 million older two-wheelers, according to the opinion piece.