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๐Ÿ‡ฎ๐Ÿ‡ณ India /Economy & Trade

India should bring back E10 option to ease consumer's concerns, says chief economic advisor

From Hindustan Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • India should consider reintroducing a lower ethanol blend, such as E10, to address public concerns and reduce overall ethanol consumption, according to Chief Economic Adviser V. Anantha Nageswaran.
  • Nageswaran clarified in an opinion piece that while there's no evidence of E20 fuel damaging engines, concerns exist about its impact on older vehicles with incompatible rubber seals.
  • This suggestion comes amid criticism of E20 fuel from opposition parties and consumer groups, though oil companies and the government defend its rollout after testing.

India should reintroduce a lower ethanol blend like E10, alongside the existing E20 option, to alleviate public worries and decrease total ethanol usage, Chief Economic Adviser V. Anantha Nageswaran has suggested. In an opinion piece for The Indian Express, co-authored by consultant Akash Poojari, Nageswaran stated this approach would protect the current vehicle fleet while retrofitting programs catch up.

While the piece acknowledged no evidence of E20 fuel causing engine damage, it highlighted concerns regarding its compatibility with older vehicles. India has a significant number of older two-wheelers, many with rubber seals not rated for ethanol, which would require years to retrofit. This issue contributes to public apprehension about the 20% ethanol blend.

The rollout of E20 fuel has faced criticism from opposition parties and some consumer groups, who allege potential engine damage and suitability issues for older vehicles. However, oil companies, automakers, and the Union government maintain that the rollout followed careful consideration and testing. State-run oil companies recently asserted that nationwide tests of E20 petrol showed no evidence of high moisture or chloride contamination, with fuel quality consistently within prescribed limits across the supply chain.

Union minister for petroleum and natural gas, Hardeep Singh Puri, has defended the government's fuel-blending policy, accusing some individuals of attempting to create controversy. He emphasized intensified testing measures, including the formation of "crack teams," to ensure fuel quality compliance throughout the supply chain.

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.

โ€” V. Anantha NageswaranIn an opinion piece for The Indian Express, outlining a proposal to ease public concerns about ethanol-blended fuel.
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Originally published by Hindustan Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.