E20 fuel debate: CEA Nageswaran dismisses concerns over engine damage, backs option of making E10 petrol available

V Anantha Nageswaran, India's Chief Economic Adviser (CEA), on Monday became the first senior government official to call for wider fuel options amid growing consumer anger, adding that the country should bring back a fuel variant with a lower ethanol blend.

In an opinion piece published in The Indian Express, CEA Nageswaran said, “Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern.”

His remarks came after the central government rolled out E20, petrol blended with 20 per cent ethanol, last year. Since April this year, it has been the only fuel option available for sale at fuel stations across the country, as part of efforts to reduce oil imports and curb pollution.

However, the decision has raised concerns over vehicle performance and potential damage to auto components, prompting many car owners to voice their grievances on social media and urge the Centre to offer petrol with lower ethanol blends.

What did CEA say on ethanol blending?

Addressing the growing concerns about E20 petrol on social media, Nageswaran wrote that while the criticism has been widespread, it is also "wrong". He said there is no evidence to support claims that E20 damages engines. He explained that ethanol contains less energy than petrol, which can result in slightly lower mileage for vehicles using E20. However, since the fuel contains about 20 per cent ethanol, the energy reduction is estimated at only around six to seven per cent, rather than 30 per cent as claimed on social media.

In terms of durability, which continues to be the primary point of contention, Nageswaran said the record is reassuring and counters the online narrative. E20 can also reduce carbon monoxide and unburnt hydrocarbon emissions, which can benefit the environment.

He also pointed to testing conducted in the US and India to counter concerns about potential engine damage from E20. In the US, a study involving 86 vehicles that covered nearly 10 million kilometres found no additional wear in vehicles running on ethanol blends of up to E20. Tests carried out in India by ARAI, the Petroleum Institute and Indian Oil similarly found no evidence of increased wear. Overall, the findings suggest that while E20 may lead to a modest drop in mileage, it does not necessarily cause engine damage.

CEA on why older two-wheelers struggle with E20 fuel

As Nageswaran dispelled fears and claims about damage from E20 fuel, he acknowledged that one concern is genuine: India has approximately 75 to 80 million two-wheelers built before BS4 that run on carburettors. Since carburettors cannot detect the additional oxygen in the fuel blend and adjust the fuel supply accordingly, using E20 can cause these engines to run with too little fuel relative to the air intake, potentially making them run hotter.

CEA's recommendations on ending E20 fuel rollout debate

He further suggested that restoring a lower blend at fuel stations, such as E10, alongside the option to buy E20, would calm public concerns, lower total ethanol use instead of raising it, and protect the existing fleet while the retrofit programme catches up. Other recommendations included correcting price and water-related distortions that unintentionally favour maize over other crops and reconsidering import duties on edible oil to encourage greater domestic self-sufficiency.

He called for maintaining E20 until India fully assesses the food-versus-fuel trade-off, rather than overlooking the issue. According to him, the debate over engine performance is not the central concern; the larger question is what crops India chooses to grow and what consequences those choices may have.

India's E20 petrol debate intensifies

The Chief Economic Adviser's remarks have renewed attention to a debate that has been unfolding since India began its push towards higher ethanol blending. The remarks come after the Centre said last month that there is no proposal to go back to lower petrol variants, such as E0 or E10, Reuters reported.

Last week, leading automakers reportedly held private discussions over concerns surrounding E20 fuel, shortly before an industry body submitted a complaint to the government, which was subsequently withdrawn.

It remains to be seen whether the government will consider the recommendations made by the CEA.

(with Reuters inputs)