Government, Industry Begin Talks On E10 Option For Older Vehicles Amid E20 Row

The Ministry of Petroleum and Natural Gas initiated feasibility talks to introduce an E10 petrol option alongside the existing E20 blend. The move follows growing consumer complaints and reports of vehicle damage associated with E20 fuel, The Indian Express reported.

India previously established a target to implement 20% ethanol blending (E20) nationwide by 2025-26. The government set this objective to cut vehicle emissions and lower the national crude oil import bill. Officials are now reviewing the transition timeline. The introduction of an E10 alternative would provide choices for consumers unable to adapt their engines to the higher ethanol concentration.

Why Is E10 Being Considered?

Automobiles manufactured before April 2023 lack BS-VI Phase 2 compliance. These older vehicles face engine corrosion and degraded fuel lines when running on E20 petrol. Recent engine testing indicates that E20 fuel lowers fuel efficiency by up to 10% in non-compliant legacy models. A senior official close to the talks told Indian Express, “If E10 is to be retailed in large volumes, it will require building an almost parallel supply chain as the existing one has shifted entirely to E20.”

An opinion piece published in The Indian Express on Monday and co-written by Chief Economic Adviser V Anantha Nageswaran advocated making a lower ethanol-petrol blend, such as E10, available alongside E20. Although the views in the article were expressed in a personal capacity, it marked the first time a senior government official had publicly backed offering consumers additional petrol blend options.

“Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern, lower total ethanol use instead of raising it, and protect the existing fleet while the retrofit programme catches up,” Nageswaran and Akash Poojari, a consultant in Department of Economic Affairs (DEA), wrote in their article.

What Could An E10 Option Mean For Older Vehicles?

Oil Marketing Companies (OMCs) are currently evaluating the financial impact of outfitting retail stations with dual-dispensing nozzles to provide both E10 and E20 fuels. Operating a dual-fuel system mandates separate underground storage tanks and dedicated supply lines at individual petrol pumps. Upgrading the existing retail network requires substantial infrastructure investments from the OMCs.

India’s ethanol blending programme has successfully reduced the national crude oil import bill over recent years. However, the initiative continues to encounter supply chain bottlenecks, particularly in states that do not produce sugarcane.

India's leading carmakers privately discussed concerns about possible contamination in E20 petrol, including high chloride and moisture levels, even as the industry publicly supported the government's nationwide rollout of the ethanol-blended fuel.

Emails and confidential industry data showed executives from Maruti Suzuki, Tata Motors and Mahindra & Mahindra exchanging concerns over fuel samples collected from retail outlets across the country, as per a report by Reuters.

The development has brought renewed attention to the Society of Indian Automobile Manufacturers' (SIAM) decision to withdraw a letter warning the government about possible contamination.

The industry data covered more than 250 fuel samples collected over roughly a year from as many as 21 of India's 36 states and territories. The samples showed elevated chloride levels in several locations across 18 states, along with high moisture content, as per Reuters.