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

India's Chief Economic Adviser V Anantha Nageswaran has suggested bringing back fuel variants with lower ethanol blends, such as E10, in response to consumer dissatisfaction with the new E20 fuel. E20, which contains 20% ethanol, was introduced last year and has been the sole fuel available since April 1. The policy change aims to reduce oil imports and curb pollution, but it has sparked concerns over vehicle performance and damage to auto parts.

Many car owners have expressed their frustrations on social media, urging the government to reintroduce lower ethanol-blended fuel options. Nageswaran's opinion piece, co-authored with Akash Poojari, argues that restoring a lower ethanol blend, such as E10, alongside E20, could alleviate public concerns. The piece emphasizes that the views are personal and not officially endorsed by the government.

While top Indian officials are rarely seen disagreeing publicly with government positions, this rare dissent highlights the growing backlash against the E20 policy. The government has not officially confirmed any plans to revert to lower ethanol blends, such as E0 or E10. However, the auto industry lobby has withdrawn a previous complaint about ethanol fuel damage after revising the numbers.

The opinion piece also notes that India has approximately 75 to 80 million older two-wheelers with rubber seals not rated for ethanol, which would require a lengthy retrofitting process. The government should prioritize protecting the existing fleet while implementing the retrofit program, according to the piece.