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Home ›› Commodities ›› Commodities Energy ›› E20 Petrol Row: Chief Economic Adviser Nageswaran Calls for Lower Ethanol Blend at Pumps

E20 Petrol Row: Chief Economic Adviser Nageswaran Calls for Lower Ethanol Blend at Pumps

Chief Economic Adviser V Anantha Nageswaran has called on the government to restore lower-ethanol petrol such as E10 alongside the mandatory E20 blend, according to Business Today. The call follows consumer concerns over vehicle performance and damage, and comes as the Supreme Court hears challenges to the E20 policy. The Centre last month said it had no proposal to bring back lower blends, and has defended the programme as cutting imported crude dependence.

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iGEN Editorial
August 17, 2026
E20 Petrol Row: Chief Economic Adviser Nageswaran Calls for Lower Ethanol Blend at Pumps

India's Chief Economic Adviser V Anantha Nageswaran has called for petrol pumps to sell a lower-ethanol blend such as E10 alongside the mandatory E20 variant, marking the first public call by a top official for greater fuel-blend choice, according to Business Today. E20 — petrol containing 20% ethanol — was introduced nationwide last year and has been the sole petrol variant available at fuel stations across the country since April 1, as part of the government's push to reduce dependence on imported oil and address pollution.

Adviser seeks E10 option at the pumps

In a column in the Indian Express, Nageswaran and co-author Akash Poojari, a consultant at India's Department of Economic Affairs, wrote:

"Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern."

Business Today reported that both authors clarified the views expressed were personal, and Reuters noted that public disagreement with an existing government position remains unusual among senior Indian officials. The opinion article came days after a Reuters report revealed that senior executives at major Indian automakers had privately raised concerns over contamination in E20. The oil ministry did not immediately respond to a Reuters request for comment, according to the report.

Fleet compatibility and retrofit challenge

While the column said available evidence does not substantiate concerns that E20 is damaging engines, it acknowledged potential problems involving older vehicles. "India has roughly 75 to 80 million older two-wheelers ... older rubber seals that are not rated for ethanol are a separate problem ... retrofitting those seals... that way will take years," the opinion piece said. The authors added that the government should "protect the existing fleet while the retrofit programme catches up." Business Today reported that many vehicle owners have taken to social media to voice concerns and demand that petrol with lower ethanol content once again be made available.

Political and legal flashpoints

The Centre's decision to make E20 mandatory has sparked a political controversy, with Opposition leaders pointing to a 2021 NITI Aayog report and questioning whether the nationwide rollout followed the safeguards and phased approach outlined in it. The debate intensified during a Supreme Court hearing on petitions challenging the E20 policy. Attorney General R Venkataramani described E20 as an "experiment" and said its outcome would become clear next year; the Centre subsequently clarified that it was not referring to E20 itself as an experiment. Fuel efficiency has emerged as the most prominent concern among consumers, the article reported.

Government defence: import savings and early target

The government has defended the ethanol programme, arguing that greater blending has helped reduce India's reliance on imported crude, conserve foreign exchange and improve energy security. It has also highlighted that India reached the 20% blending target five years earlier than the original 2030 deadline. Last month, the government said it had no proposal to bring back lower-ethanol petrol variants such as E0 or E10, Business Today reported.

Blend Ethanol content Status per Business Today report
E0 0% Government said last month it had no proposal to bring back lower-ethanol variants
E10 10% Proposed by the CEA as an option alongside E20; the standard petrol blend in the US
E15 15% Being expanded in the US, according to the government's example
E20 20% Introduced nationwide last year; sole petrol variant at Indian pumps since April 1

Broader global blend context

Business Today reported that the government rejected the suggestion that India's ethanol policy is unusual internationally, arguing that the country is part of a broader global shift towards higher ethanol blends. As an example, it cited the United States, where E10 is the standard petrol blend and E15 is being expanded. The government said last month it had no proposal to bring back E0 or E10, while the Attorney General said the outcome of what he called the E20 "experiment" would become clear next year. The oil ministry had not immediately responded to a Reuters request for comment, according to the report.


Sources: Business-Today

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