India's Chief Economic Adviser suggests reintroducing E10 petrol

India’s Chief Economic Adviser (CEA), V Anantha Nageswaran, has recommended that the government reintroduce E10 petrol (10% ethanol blend) alongside the current E20 fuel to protect older vehicles. In an opinion piece co-authored by Akash Poojari, Nageswaran noted that approximately 75 to 80 million older two-wheelers in India, particularly those using carburettor technology, may face performance issues or component damage when using E20 fuel.

The recommendation highlights a potential ‘food-versus-fuel’ trade-off, noting that increasing ethanol production requires significant land and water resources. While the government has dismissed claims of widespread engine damage, the CEA suggests that offering a lower-blend option would address public concerns and provide a buffer while the vehicle fleet undergoes necessary retrofitting.

In contrast, Indian Oil Corporation has defended the E20 rollout, stating the program has saved nearly ₹1.97 lakh crore in foreign exchange and provided ₹1.66 lakh crore in benefits to farmers. The Ministry of Petroleum and Natural Gas previously indicated that maintaining multiple fuel grades would present significant logistical and operational challenges.