Chief Economic Advisor Recommends Reintroduction Of E10 Fuel In India

Chief Economic Advisor to the Government of India, V. Anantha Nageswaran, has authored an opinion piece in The Indian Express, where he discusses bringing back E10 or lower-blended fuel for older vehicles.

To start with, he states, “Ethanol carries about two-thirds the energy of petrol, so a litre of E20 takes you a little less far, but the loss is small and does not signal any malfunction. Ethanol is only a fifth of the blend, so the energy penalty is around 6 to 7 per cent, not the 30 per cent doing the rounds. Carbon monoxide and unburnt hydrocarbons actually fall, which is good for the environment.”

Also Read: Ethanol Blended Diesel Does Not Meet Existing Diesel Flash Point Safety Standards

He does support the use of E20, keeping environmental concerns in mind. He further states, “The US, one of the global leaders in ethanol blending, had the Oakridge National Laboratory run 86 vehicles for a cumulative total of nearly 10 million kilometres on blends up to E20 and found no increased wear in cars not rated for E20. India’s own testing by ARAI, the petroleum institute, and Indian Oil reached the same conclusion. Thus, social-media worries about engine damage do not hold up.”

This suggests that claims circulating on social media about E20 causing engine damage are not entirely accurate, and that there is no general reason for concern about engine damage in compatible vehicles.

He says, “India has roughly 75 to 80 million older two-wheelers built before BS4 that run on carburettors. A carburettor cannot sense the extra oxygen in the blend and adjust for it, so on E20, the engine draws in too little fuel for the air it draws in and runs hot.”

This means that older vehicles equipped with carburettors are not capable of automatically adjusting the air-fuel ratio (AFR) when E20 petrol is used. In simple terms, ethanol requires more fuel to burn efficiently, and because carburettors cannot sense the change in fuel composition, the engine receives more air relative to the amount of fuel. This results in a lean air-fuel mixture.

As a result, the engine may run at a higher temperature than usual, which could affect its performance, efficiency and durability over time.

Rubber Seals Could Also Be An Issue

Keeping the engine-related concerns aside, he further highlights the issue of rubber seals. He states, “Further, older rubber seals that are not rated for ethanol are a separate problem, as they degrade on contact with the fuel regardless of engine temperature. Retrofitting those seals with ethanol-compatible ones is cheap. Still, it happens one vehicle at a time, and covering 75 to 80 million two-wheelers that way will take years, even if every workshop starts today.”

Based on this, he recommends, “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.”

Impact On India's Import Bill

Going ahead, he talks about India's import bills. He states, “The crude oil bill is huge, around Rs 11-12 lakh crore a year. The edible oil bill is far smaller, roughly Rs 1.6 to 1.75 lakh crore. Ethanol at E20 trims only 3 to 4 per cent of the crude bill. The edible oil gap looks less daunting and is far more closeable. India already produces about 40 per cent of its cooking oil and aims to reach 72 per cent by 2030-31. A gap that the government can not only close fully but also stop subsidising is worth more than one you can only nibble at forever.”

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