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Home India Government

Chief Economic Adviser Proposes Restoration of E10 Fuel Option for Older Vehicles

ainewsroom kairos by ainewsroom kairos
August 17, 2026
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The Union government is considering a proposal to restore the option of 10% ethanol-blended fuel (E10) for older vehicles, as per the Chief Economic Adviser V Anantha Nageswaran. This move aims to address concerns about engine damage and reduced mileage from the current 20% ethanol-blended fuel (E20).

According to an article published in The Indian Express on Monday, the Chief Economic Adviser, V Anantha Nageswaran, along with co-author Akash Poojari, a consultant with the Department of Economic Affairs, have suggested restoring the E10 fuel option. This proposal is aimed at alleviating issues faced by vehicles that run on carburettors, which struggle to adjust the air-fuel mixture in response to the additional oxygen present in the E20 variant of petrol.

The authors emphasize that India has approximately 75 million to 80 million older two-wheelers with such engines. They also highlight concerns regarding older rubber seals, which are not designed to withstand ethanol and may deteriorate when exposed to the fuel, even at normal temperatures.

The authors argue that restoring E10 would help 'calm most public concern,' reduce total ethanol use, and protect existing vehicles while a retrofitting program catches up. However, the Union government previously stated that maintaining multiple grades of base petrol across the country's vast fuel supply chain would present logistical challenges.

The authors also dispute claims that E20 causes engine damage or increases wear in cars not rated for E20. They cite testing by the US Oak Ridge National Laboratory and India's Automotive Research Association of India, which found no increased wear in such vehicles.


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