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Chief Economic Adviser V Anantha Nageswaran has proposed restoring E10 petrol for older vehicles while retaining E20 for newer models. He made the recommendation with Akash Poojari, a consultant with India’s Department of Economic Affairs.
Their proposal addresses concerns about mileage, fuel-system parts and compatibility among owners of older vehicles. The authors also urged policymakers to review food, feed, land and water costs before raising ethanol blending above 20%.
India has about 75 million to 80 million older two-wheelers built to use E10 petrol. Many use carburettors and fuel-system parts that manufacturers did not make for higher ethanol blends.
Carburettors cannot detect the extra oxygen linked to ethanol and adjust the fuel-air mixture automatically. Therefore, some older engines may run with less fuel than needed and reach higher temperatures.
Older rubber seals may also degrade after contact with ethanol. Nageswaran and Poojari said workshops can replace these parts with ethanol-compatible components at a relatively low cost.
Still, retrofitting millions of vehicles would require several years. The authors said E10 petrol could protect these vehicles while workshops complete the required upgrades.
“Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern,” they wrote.
They added that offering both blends would reduce total ethanol use while protecting India’s existing vehicle fleet. Newer vehicles compatible with E20 could keep using the higher blend.
India reached its 20% ethanol-blending target earlier than originally planned. The programme aims to reduce crude oil imports, save foreign currency and support domestic ethanol producers.
India produces ethanol from sugarcane, maize, rice and other grains. As fuel demand increases, distilleries compete with food, animal feed and other industries for these crops.
The authors focused on maize, which now provides about half of India’s ethanol. Grains together supply nearly 67% of the country’s ethanol feedstock.
Maize also serves as an important input for poultry and livestock feed. Higher purchases from distilleries could affect its price and availability for those industries.
Farmers may also move land from soybean, groundnut and mustard production into maize. Fixed procurement prices for maize-based ethanol can make the crop more attractive than other options.
Water use presents another concern. Sugarcane requires large amounts of water, while grain production also places pressure on land and irrigation supplies.
“Once land and water are committed to fuel, and distilleries and cropping patterns are built around it, pulling back can be painful,” the authors wrote.
They urged India to calculate these costs before considering E27 or E30 petrol. Higher blends would require more feedstock and increase competition between fuel, food and animal feed.
The Indian government has defended E20 petrol, citing tests by domestic research agencies and automobile companies. Officials say those studies found no evidence of widespread engine damage.
Nageswaran also rejected claims that E20 cuts fuel efficiency by 30%. He placed the likely energy-related reduction at about 6% to 7%.
The All India Distillers’ Association opposed any broad policy reversal. Vice President Kushal Mittal said scientific testing and objective data should guide India’s fuel policy.
“India should focus on resolving genuine technical and operational concerns rather than going back to a lower blend,” Mittal said.
The government also argues that E20 reduces dependence on imported fossil fuels and creates demand for domestic crops. It has resisted offering several petrol blends nationwide due to distribution and storage costs.
Nageswaran and Poojari did not call for ending the E20 fuel policy. Their proposal keeps E20 for compatible vehicles while restoring E10 petrol for the older fleet.
They also advised India to retain the current blending level while reviewing agricultural and water requirements. The government has not announced plans to increase ethanol blending beyond 20%.
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