Government Holds Preliminary Talks On Bringing Back E10 Fuel For Older Vehicles

The Indian government has opened preliminary discussions on reintroducing E10 fuel as an additional option for older vehicles, running alongside the mandatory E20 petrol blend, following concerns from owners over compatibility and mileage.

The talks, first reported by The Indian Express, are still at an early stage. Officials are examining technical and non-technical issues, including the impact on India's fuel supply chain and retail network, and no final decision has been taken so far.

Image Source: PTI

E20 petrol, which contains 20 per cent ethanol against E10's 10 per cent, became the standard fuel grade across the country from April 1, 2026. Vehicles manufactured before April 2023 do not meet BS-VI Phase 2 emission norms and were not designed for the higher blend.

The government has maintained that E20 does not damage engine components and has pegged the mileage loss in older, non-compliant vehicles at 3 to 5 per cent. Some owners have reported steeper drops and more frequent service visits, with rubber gaskets sometimes needing replacement past 20,000 km of use.

CEA Backs E10 Option For Older Vehicles

The renewed talks followed an opinion piece in The Indian Express by Chief Economic Adviser V Anantha Nageswaran and Department of Economic Affairs consultant Akash Poojari, proposing that E10 remain available for older vehicles while newer ones continue on E20. The article cited around 75 to 80 million two-wheelers in India still built for the lower blend.

The proposal does not call for scrapping the E20 mandate. Nageswaran and Poojari also flagged the food, land and water implications of pushing ethanol blending further to E27 or E30, arguing these need careful assessment before any such move.

Supply Chain Remains The Sticking Point

Running E10 and E20 in parallel would require separate storage, transport and dispensing arrangements across India's fuel retail network, which spans more than one lakh outlets alongside refineries, terminals, depots and pipelines. The government said in July that maintaining multiple base petrol grades nationwide would pose an enormous logistical challenge and raise costs.

India consumed around 43 million tonnes of petrol in 2025-26, its second most-consumed petroleum fuel, underlining the scale involved in any dual-grade rollout. The country reached its 20 per cent ethanol blending target five years ahead of the original 2030 deadline.

The discussions have also drawn political criticism, with opposition leaders questioning the E20 rollout and pressing the government for clarity on fuel choice for consumers.