India’s economic adviser calls for return of lower ethanol fuel blend

India's Chief Economic Adviser V Anantha Nageswaran has suggested bringing back a fuel variant with a lower blend of ethanol, E10, amid growing public discontent over the government's decision to make E20 petrol the only fuel available nationwide. E20, with 20% ethanol, was introduced last year as part of Prime Minister Narendra Modi's plan to reduce oil imports and curb pollution.

However, the new fuel has raised concerns about vehicle performance and potential damage to auto parts. Many car owners have expressed their frustrations on social media, urging the government to reintroduce lower ethanol-blended fuel variants, such as E10. Nageswaran's opinion piece, co-authored with a Department of Economic Affairs consultant, noted that their views were personal and not officially endorsed by the government.

While the government maintains there are no plans to revert to lower ethanol-blended petrol variants, the opinion piece highlighted the concerns of top automakers and the industry lobby, who privately expressed worries about E20 contamination. The piece also addressed the issue of older vehicles, which may not be compatible with E20 due to inadequate ethanol-resistant seals.

Nageswaran suggested that the government should protect the existing fleet while the retrofitting process for older vehicles is carried out.