India should bring back fuel with lower blend of ethanol, chief economic adviser says

NEW DELHI: 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.

Also read: Maruti, Tata, Mahindra raised E20 fuel contamination concerns, emails show


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.

Also read: E20 petrol not sole reason for lower mileage, Centre says



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about E20 contamination, ​days before ​an industry lobby sent ⁠a letter of complaint to the government, which was later withdrawn.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.