Preliminary discussions are underway within the government and fuel industry on whether E10 petrol, containing 10% ethanol, can be sold alongside E20 fuel for older vehicles, sources aware of the matter said. The discussions come amid growing concern over E20 fuel being the only standard petrol variant available across India, particularly for older cars and two-wheelers that were certified for E10. No concrete decision has been taken yet, with officials examining technical and non-technical issues involved in changing the country’s complex fuel retail system.
Reportedly, the government has maintained that E20 fuel is cleaner and superior to pure petrol and lower ethanol blends. It has also said that older vehicles could see a mileage reduction of only 3-5%, which would be outweighed by the benefits of the higher blend. The government has repeatedly rejected claims that E20 fuel can damage engine components. However, motorists and Opposition leaders have questioned why consumers are not being given a choice between pure petrol, E10 and E20.
E20 fuel debate brings older vehicles back into focus
The latest discussions were triggered by the backlash against E20 fuel and concerns about the lack of choice for owners of older vehicles, especially two-wheelers designed for E10. In July, the government had said that selling different grades of base petrol nationwide would create an “enormous logistical challenge”, while increasing costs and reducing efficiency.
As per reports, India consumed around 43 million tonnes of petrol in 2025-26, making petrol the country’s second most consumed petroleum fuel. The scale of that demand is central to the debate because offering E10 and E20 in large volumes would require changes across the entire supply network rather than simply adding another option at individual pumps.
An opinion article co-authored by Chief Economic Adviser V Anantha Nageswaran and Akash Poojari, a consultant in the Department of Economic Affairs, has now added weight to the argument for greater choice. Writing in The Indian Express on Monday, they said, “Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern, lower total ethanol use instead of raising it, and protect the existing fleet while the retrofit programme catches up.” The views in the article were described as personal.
E20 fuel supply chain makes dual retailing difficult
For oil companies, bringing E10 back at scale would mean effectively creating another petrol supply network. Reportedly, a senior oil industry official said offering two base variants simultaneously is not “simple and straightforward”.
“It will be like introducing a new petrol variant altogether, that too in large volumes. Apart from the base fuel (E20), we do have two-three premium petrol variants, but their consumption is minuscule compared to the base petrol, so it is not too complicated to offer some volumes of such fuels along with E20. But if E10 is to be retailed in large volumes, it will require building an almost parallel supply chain as the existing one has shifted entirely to E20,” the official said, as per The Indian Express.
Most fuel stations use one or two underground tanks. Selling E10 alongside E20 would require thousands of outlets to have separate storage tanks and dispensers. Oil marketing companies would also need separate supply chains from blending facilities to retail pumps, including road tankers carrying different petrol grades while preventing cross-contamination.
E20 fuel policy faces a choice between efficiency and flexibility
Refineries and terminals would also have to operate two automated blending processes at the same time, one producing a 10% ethanol mix and another producing a 20% mix. The government had earlier argued that shifting back from E20 fuel to lower blends would not be prudent because the existing system has already required massive investments.
The Petroleum Ministry had rejected multiple base petrol variants in an FAQ released on July 10 and repeated the position during Parliament’s Monsoon Session. It said India has more than one lakh retail outlets linked through refineries, terminals, depots and pipelines, making multiple base fuels difficult to manage.
“…if a cleaner, faster and less-polluting fuel is available, why would we deliberately choose an inferior alternative? The suggestion that every petrol pump should stock pure petrol, E10 and E20 simultaneously also ignores the realities of India’s fuel distribution network. India operates over one lakh retail outlets, supported by an extensive network of refineries, terminals, depots and pipelines. Maintaining multiple grades of base petrol across this vast supply chain would create an enormous logistical challenge, increase handling costs, complicate inventory management and reduce operational efficiency,” the ministry said, as per reports.
Vehicles manufactured and sold after April 2023 are considered fully E20-compliant under BS6 Phase 2 norms. Older vehicles, however, may not be. In the NCR, where petrol vehicles can currently be used for 15 years, a car manufactured in 2022 could remain on the road until 2037. That leaves a large older fleet at the centre of the E20 fuel debate.
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Khalid Lateef is a Sub-Editor at NewsX Digital, specializing in Indian politics and global affairs. He also covers viral trending stories and major crime developments.
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