CEA urges return of lower ethanol petrol
Chief Economic Adviser V Anantha Nageswaran has called for lower-ethanol petrol such as E10 to be restored alongside E20, arguing that motorists should have a choice while compatibility problems affecting parts of the older vehicle fleet are addressed.
Nageswaran’s intervention marks a significant shift in the debate over the nationwide move to E20, petrol containing 20 per cent ethanol. Writing with Department of Economic Affairs consultant Akash Poojari, he said restoring a lower blend at fuel stations could ease much of the public concern surrounding the transition. The authors made clear that the views expressed were personal.
The proposal comes after E20 became the only petrol blend available nationally from April 1, 2026. The transition forms part of the government’s strategy to reduce dependence on imported crude oil, support domestic ethanol production and lower transport emissions. The government had previously said there was no proposal to return to E0 or E10 petrol.
Nageswaran did not endorse claims that E20 is broadly damaging vehicle engines. Available evidence, including testing and service data, has not established widespread engine failures attributable to the fuel. Automakers have also said extensive testing of older vehicles has failed to show systemic engine damage caused by E20.
The more difficult issue involves older vehicles whose fuel-system components were designed for lower ethanol concentrations. Nageswaran and Poojari estimated that the country has about 75 million to 80 million older two-wheelers, some equipped with rubber seals that were not designed for higher ethanol exposure. Replacing such components across the existing fleet would require an extensive retrofit programme that could take years.
Ethanol can interact differently with some older rubber and polymer components used in fuel systems. The government’s original ethanol roadmap acknowledged that vehicles moving to E20 needed both material compatibility and suitable engine calibration. Testing has nevertheless produced a more nuanced picture, with research finding no broad problems among tested two-wheelers while identifying possible risks to some rubber components and particular engine configurations in E10-designed vehicles.
Fuel economy has become another focus of consumer complaints. E20 contains less energy per litre than conventional petrol because ethanol has lower energy density. Automobile industry representatives have acknowledged that fuel efficiency can fall by roughly 3 per cent to 3.5 per cent in some vehicles, although the effect varies according to engine design, driving conditions and calibration.
Authorities have resisted suggestions that ethanol blending alone explains every mileage complaint. Fuel consumption is affected by vehicle condition, traffic, driving behaviour, tyre pressure and other factors. Oil companies have also rejected claims that ethanol blending inherently causes fuel contamination, while inspections have covered about 90,000 filling stations as concerns over petrol quality intensified.
The controversy has exposed a gap between the rapid pace of ethanol policy and the age profile of the vehicle fleet. E20-compatible passenger vehicles became widely available only in the past few years, while millions of cars and two-wheelers still on the road were designed when E5 or E10 was the prevailing specification. Some older vehicle manuals explicitly recommend lower ethanol concentrations.
Carmakers including Maruti Suzuki, Hero MotoCorp and Toyota Kirloskar Motor have defended E20. Maruti Suzuki has said it serviced more than 15 million older cars over two years without finding ethanol-related problems and tested E10-era vehicles using E20 without identifying significant concerns. Industry officials maintain that normal engines can tolerate the fuel, although ageing components may require inspection or replacement.
The government has strong economic reasons for maintaining ethanol blending. Higher domestic ethanol consumption reduces demand for imported petroleum and creates another market for agricultural feedstocks. The programme reached the 20 per cent blending target years ahead of the original timetable, while policy is already moving towards flex-fuel vehicles capable of operating on blends ranging from E20 to E85 or higher.
Nageswaran’s intervention marks a significant shift in the debate over the nationwide move to E20, petrol containing 20 per cent ethanol. Writing with Department of Economic Affairs consultant Akash Poojari, he said restoring a lower blend at fuel stations could ease much of the public concern surrounding the transition. The authors made clear that the views expressed were personal.
The proposal comes after E20 became the only petrol blend available nationally from April 1, 2026. The transition forms part of the government’s strategy to reduce dependence on imported crude oil, support domestic ethanol production and lower transport emissions. The government had previously said there was no proposal to return to E0 or E10 petrol.
Nageswaran did not endorse claims that E20 is broadly damaging vehicle engines. Available evidence, including testing and service data, has not established widespread engine failures attributable to the fuel. Automakers have also said extensive testing of older vehicles has failed to show systemic engine damage caused by E20.
The more difficult issue involves older vehicles whose fuel-system components were designed for lower ethanol concentrations. Nageswaran and Poojari estimated that the country has about 75 million to 80 million older two-wheelers, some equipped with rubber seals that were not designed for higher ethanol exposure. Replacing such components across the existing fleet would require an extensive retrofit programme that could take years.
Ethanol can interact differently with some older rubber and polymer components used in fuel systems. The government’s original ethanol roadmap acknowledged that vehicles moving to E20 needed both material compatibility and suitable engine calibration. Testing has nevertheless produced a more nuanced picture, with research finding no broad problems among tested two-wheelers while identifying possible risks to some rubber components and particular engine configurations in E10-designed vehicles.
Fuel economy has become another focus of consumer complaints. E20 contains less energy per litre than conventional petrol because ethanol has lower energy density. Automobile industry representatives have acknowledged that fuel efficiency can fall by roughly 3 per cent to 3.5 per cent in some vehicles, although the effect varies according to engine design, driving conditions and calibration.
Authorities have resisted suggestions that ethanol blending alone explains every mileage complaint. Fuel consumption is affected by vehicle condition, traffic, driving behaviour, tyre pressure and other factors. Oil companies have also rejected claims that ethanol blending inherently causes fuel contamination, while inspections have covered about 90,000 filling stations as concerns over petrol quality intensified.
The controversy has exposed a gap between the rapid pace of ethanol policy and the age profile of the vehicle fleet. E20-compatible passenger vehicles became widely available only in the past few years, while millions of cars and two-wheelers still on the road were designed when E5 or E10 was the prevailing specification. Some older vehicle manuals explicitly recommend lower ethanol concentrations.
Carmakers including Maruti Suzuki, Hero MotoCorp and Toyota Kirloskar Motor have defended E20. Maruti Suzuki has said it serviced more than 15 million older cars over two years without finding ethanol-related problems and tested E10-era vehicles using E20 without identifying significant concerns. Industry officials maintain that normal engines can tolerate the fuel, although ageing components may require inspection or replacement.
The government has strong economic reasons for maintaining ethanol blending. Higher domestic ethanol consumption reduces demand for imported petroleum and creates another market for agricultural feedstocks. The programme reached the 20 per cent blending target years ahead of the original timetable, while policy is already moving towards flex-fuel vehicles capable of operating on blends ranging from E20 to E85 or higher.