New Delhi: India’s nationwide shift to petrol containing 20 percent ethanol has entered a new phase of debate after the country’s Chief Economic Adviser called for the return of a lower ethanol blend for older vehicles.
V. Anantha Nageswaran has suggested that E10 petrol, which contains 10 percent ethanol, should be made available alongside E20, which is now the standard petrol sold across the country. His proposal comes as concerns continue to grow among vehicle owners about fuel economy, older engines, fuel quality and the wider economic impact of using increasing amounts of ethanol.
E20 became the only petrol option at fuel stations across India from April 1, 2026. The policy is part of the government’s long term effort to reduce dependence on imported crude oil, cut fuel related emissions and create a larger market for domestically produced ethanol.
However, the move has faced growing criticism, particularly from owners of older cars, motorcycles and scooters. Nageswaran has pointed out that India has an estimated 75 million to 80 million older two wheelers that were designed to operate with E10 petrol. Many of these vehicles use older technology, including carburettors, and were not designed specifically for higher ethanol concentrations.
The concern is not simply about whether an engine will immediately stop working. Ethanol has different properties from petrol and can affect the way fuel systems operate. Older rubber seals and other fuel system components may not have been designed for higher ethanol blends. Carburettor based vehicles can also have difficulty adjusting to changes in the fuel mixture.
For many motorists, another concern is fuel efficiency. Ethanol contains less energy than petrol, meaning vehicles can require more fuel to cover the same distance. The effect varies according to the vehicle, its engine design and driving conditions. Government assessments have acknowledged that some older vehicles could experience a reduction in mileage when using E20.
The latest proposal does not call for India to abandon its ethanol programme. Instead, it suggests giving consumers a choice. Newer vehicles designed for E20 could continue using the higher blend, while older vehicles could have access to E10 until they are replaced or modified.
That approach could also reduce pressure on the ethanol supply system. Producing more ethanol requires agricultural resources, including land and water. Nageswaran and Department of Economic Affairs consultant Akash Poojari have argued that India should carefully examine the food, animal feed and water implications before considering ethanol blends higher than 20 percent.
India has already invested heavily in expanding ethanol production. The government views the programme as an important way to reduce crude oil imports while creating additional demand for agricultural products. Ethanol production has also become an important source of income for farmers and sugar producers.
At the same time, questions about the quality of E20 fuel have added another layer to the controversy. Recent reports have revealed that major automobile manufacturers privately raised concerns about moisture and chloride contamination in some E20 fuel samples. Industry representatives later withdrew a formal warning after questions were raised about the data and the scale of the problem.
The contamination issue is separate from the question of whether vehicles are designed to use E20. Poor quality or contaminated fuel can create problems regardless of the vehicle’s ethanol compatibility. The government has maintained that fuel sold through petrol stations must meet established quality standards and has rejected claims of widespread vehicle damage caused by E20.
The government has also pointed to testing and service data from automobile manufacturers to argue that there is no evidence of widespread engine damage from E20 in vehicles designed or approved for the fuel.
This leaves India facing a complicated policy choice. The country has already built much of its fuel strategy around ethanol blending, and reversing the programme would undermine efforts to reduce oil imports. But forcing every petrol vehicle to use the same blend has created concerns among owners of older vehicles who may have limited ability to replace their cars or motorcycles.
Restoring E10 alongside E20 could offer a middle path. It would allow India to continue its ethanol programme while giving owners of older vehicles another option during the transition.
The debate is therefore no longer simply about whether ethanol is good or bad for India. It is increasingly about how the country can balance energy security, environmental goals, farmer incomes, vehicle compatibility, consumer costs and the use of land and water.
For now, there is no confirmed government decision to reverse the nationwide E20 policy. But the intervention by the Chief Economic Adviser has given new weight to calls for a more flexible system.
The next question will be whether the government decides to formally consider separate E10 and E20 options at petrol stations. If it does, India’s ethanol policy could move from a single national fuel standard toward a system that gives greater consideration to the age and technology of individual vehicles.