E10 Petrol to Return? Government May Offer Lower-Ethanol Fuel as Premium Option

India may reintroduce E10 petrol via premium 95-octane brands like XP95, SPEED and Power95, Mint reports. The petroleum ministry is in early talks with OMCs to offer a lower-ethanol option for older vehicles without creating a separate fuel stream.

India is considering bringing back E10 petrol by selling a 10% ethanol blend through premium 95-octane brands, according to Mint. The move would give owners of older vehicles a lower-ethanol choice without creating a new nationwide fuel stream.

The petroleum ministry is discussing the idea with Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, three people told Mint. Talks are at an early stage and no final decision has been taken. E20, which contains 20% ethanol, is now the standard petrol blend at fuel stations across India, but motorists remain worried about compatibility and mileage.

Under evaluation is a plan to offer 95-octane petrol as E10 using existing premium lines such as Indian Oil’s XP95, Bharat Petroleum’s SPEED and Hindustan Petroleum’s Power95. These fuels currently carry E20 and additives, are sold across around 90,000 public-sector petrol pumps, and cost roughly ₹110-115 per litre in Delhi versus about ₹102 for regular petrol.

How a premium E10 could work

Mint reported premium fuels now account for around 15% of OMC petrol sales, up from about 4% in March, as some motorists uneasy about E20 shift to higher-octane options. The government and OMCs are also assessing whether consumers would prefer a premium E10 or a cheaper, regular E10 alternative.

Fuel dealers say the existing premium-petrol infrastructure could make an E10 rollout straightforward. “Providing ‘95 Octane’ branded fuels with 10% ethanol is quite easy for OMCs. No need to change tanks or delivery units,” said Monty Sehgal, national spokesperson for the Federation of All India Petroleum Traders. A petrol pump owner in Patna, Prashant Sinha, added that separate chambers for premium 95-octane petrol already exist and could be used for E10. By contrast, a separate E10 stream would need additional storage and distribution.

“Options are being looked at in order to offer the more appropriate E10 fuel for older vehicles and allay the consumer concerns,” one person cited by Mint said, adding that 95-octane petrol, sold at a premium, is among the options.

Why E10 is back on the table

In July, the government said vehicles designed for E10 could see a marginal 3-5% drop in fuel efficiency with E20, while denying evidence of widespread engine failures or breakdowns linked to ethanol blending. Vehicles sold before April 2023 were generally certified for E10, and ethanol’s lower energy density means higher blends can reduce mileage, though impacts vary by vehicle and conditions.

The debate intensified after chief economic adviser V Anantha Nageswaran urged restoring a lower-ethanol petrol alongside E20 and advocated making E10 available at fuel stations. The petroleum ministry has previously opposed multiple nationwide fuel streams, warning in July that separate supply chains for pure petrol, E10 and E20 would strain logistics, raise handling costs and complicate inventories. It also treats premium fuels as niche products rather than separate base-fuel streams, making a premium E10 a potential middle path.

Consumer groups want more choice. Consumer VOICE managing trustee Ashim Sanyal told Mint motorists should be able to pick fuel compatible with their vehicles, particularly older ones, and any E10 rollout should be clearly labelled and widely available. India’s ethanol-blending programme began with a pilot in 2001, rising from around 1.53% in 2013-14 to the current E20 level.

Leave a Comment