Govt Divided Over Proposal To Bring Back E-10 Petrol; CEA Backs More Fuel Options, Oil Ministry Says Otherwise

Jagran Bureau | New Delhi: Concerns over the mandatory use of E-20 petrol, which contains 20 per cent ethanol, remain, especially among owners of older vehicles. A divide over the E20-only policy between the Finance Ministry and the Ministry of Petroleum and Natural Gas has now become clear, with Chief Economic Advisor V Anantha Nageswaran calling for more fuel options at the petrol pumps.

The Petroleum Ministry has repeatedly said in recent weeks that E-10 or E-0 petrol will not be sold again. In contrast, CEA V Anantha Nageswaran has backed making E-10 available again in an article published in a leading newspaper. Nageswaran co-authored the article with Akash Poojari, an adviser with the Department of Economic Affairs (DEA) under the Finance Ministry.

The article states that the views expressed are personal. However, officials in the Petroleum Ministry are uncomfortable with the views expressed by the Finance Ministry advisers.

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The article says petrol pumps should bring back lower-ethanol fuel such as E-10 for older vehicles. "Restoring lower blends such as E-10 at pumps alongside E-20 as an option would address most public concerns, reduce rather than increase total ethanol use, and protect the existing vehicle fleet," the article reads.

The authors also said claims circulating on social media that E-20 damages engines are largely incorrect. "Ethanol has about two-thirds the energy content of petrol. As a result, E-20 can reduce mileage by around 6-7 per cent. The decline is not 30 per cent, as claimed in some reports," it noted.

The article also indirectly questioned claims that ethanol blending will reduce the crude oil import bill. India's annual oil import bill is around Rs 11-12 lakh crore. According to the article, E-20 can affect only around 3-4 per cent of this bill.

It also cautioned against moving beyond E-20 to E-27 or E-30 without a detailed assessment of the impact on land, water and cropping patterns. It recommended correcting pricing and water-related distortions that could unfairly encourage crops such as maize. It also suggested reviewing import duties on edible oils.

The Petroleum Ministry, meanwhile, has taken a different position. In a detailed document issued in July and in its replies to Parliament, it clearly stated that there is no proposal to bring back E-0 or E-10 petrol. The ministry says E-20 is scientifically validated and the automobile industry has accepted it after extensive testing. It also considers E-20 a better fuel than pure petrol or E-10.

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The ministry has also pointed to the logistical challenges involved in maintaining separate supply chains for different grades of petrol, including pure petrol, E-10 and E-20. More than one lakh petrol pumps, refineries, depots and pipelines are part of the nationwide network.

Maintaining parallel supply chains for different fuel grades would create a major logistical challenge, the ministry said. It also warned that investments already made for the E-20 rollout could become redundant.