CEA's E10 fuel suggestion faces practical hurdles, say officials

The debate over ethanol-blended petrol has resurfaced after Chief Economic Adviser (CEA) V. Anantha Nageswaran suggested that E10 — petrol blended with 10% ethanol — should be made available for vehicles manufactured before April 2023. The remarks, made in an opinion piece, have reignited discussions on whether the government should offer a lower ethanol blend alongside the promoted E20 fuel.

Officials involved in fuel policy told TOI that the CEA's views came as a surprise. They noted that the current ecosystem is built around E20 blending, which is linked to the rural economy through ethanol procurement from farmers. Adding E10 as an option at fuel stations would require significant logistical changes, they said.

A government official said there is currently no discussion within the government to provide E10 at fuel stations. While there has been a campaign demanding petrol with a lower ethanol content, the official stated that no proposal is under consideration. "Creating additional infrastructure to dispense E10 petrol is not only logistically difficult but may also lead to practical issues such as pricing and distribution," the official said.

Another official defended the E20 fuel, asserting that it is safe for older vehicles. "Allowing the sale of E10 would mean the government is accepting that E20 petrol is not good for older vehicles, which is not the case. Studies have shown that E20 does not cause any mechanical issues," the official said.

The CEA's intervention adds a new dimension to the ongoing debate over ethanol blending. Proponents of E10 argue that older vehicles, particularly those not designed for higher blends, could benefit from a choice. However, officials counter that the infrastructure and supply chain for E20 are already in place, and reverting to or adding E10 would disrupt the program's momentum.

The government has been pushing E20 as part of its efforts to reduce oil imports and support the agricultural sector. Ethanol blending has been gradually increased, with E20 targeted for wider availability. The debate highlights the challenges of balancing policy goals with consumer concerns and practical implementation.

As the discussion continues, the question of whether E10 should be offered as an option remains unresolved. For now, the government appears committed to E20, and officials suggest that the infrastructure for E10 is neither feasible nor necessary.