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India's Chief Economic Adviser V. Anantha Nageswaran speaks during a news conference in New Delhi, India, January 31, 2023. REUTERS/Adnan Abidi
India's Chief Economic Adviser V. Anantha Nageswaran speaks during a news conference in New Delhi, India, January 31, 2023. REUTERS/Adnan Abidi
People sit in front of a signboard with information about E20 ethanol fuel at a bus stop in New Delhi, India, August 5, 2026. REUTERS/Bhawika Chhabra/File Photo
People sit in front of a signboard with information about E20 ethanol fuel at a bus stop in New Delhi, India, August 5, 2026. REUTERS/Bhawika Chhabra/File Photo
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India should bring back fuel with lower blend of ethanol, chief economic adviser says

August 17th, 2026 | 06:34 AM WORLD India 2

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By Reuters

India should bring back a fuel variant with a lower blend of ethanol, according to a top government adviser, the first senior official to ​call for wider fuel options amid growing consumer anger against a contentious ‌policy change.

E20 — petrol with 20% ethanol blended in it — was rolled out last year and since April 1, it has been the only fuel available for sale at gas stations across the country, ​part of Prime Minister Narendra Modi's plans to reduce oil imports and ​help curb pollution.

But the move has stoked widespread concerns about vehicular performance and ⁠damage to auto parts, with many car owners venting their frustrations on social ​media and calling on the government to make lower ethanol-blended fuel variants available.

"Restoring a lower ​blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern," India's Chief Economic Adviser V Anantha Nageswaran said in an opinion piece in the Indian Express newspaper ​on Monday.

The piece was co-authored with Akash Poojari, a consultant in India's Department ​of Economic Affairs. They noted that their views were personal. It is, however, rare for top Indian ‌officials ⁠to disagree publicly with a government position.

A spokesperson for India's oil ministry did not immediately respond to a Reuters' request for comment. The government said last month that there is no proposal to revert to lower blended petrol variants, such as E0 or ​E10.

The opinion piece ​follows a Reuters report ⁠last week that top automakers privately discussed their concerns about E20 contamination, days before an industry lobby sent a letter of complaint ​to the government, which was later withdrawn.

The opinion piece said the ​evidence does ⁠not support fears of damage to engines, but there were concerns about other impacts of E20 on 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.

New Delhi should "protect the existing fleet ​while the retrofit programme catches up," it said.

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  • FUEL/ETHANOL (PIX)
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