E10 petrol may make a comeback, but motorists could have to pay a premium for it, as the government explores ways to address concerns over E20 fuel, particularly among owners of older vehicles.
The petroleum ministry is considering whether premium petrol brands such as Indian Oil’s XP95, Bharat Petroleum’s SPEED and Hindustan Petroleum’s Power95 could be offered with a 10% ethanol blend. The proposal is aimed at providing owners of older, E10-compatible vehicles with access to lower-ethanol fuel without requiring the creation of a separate nationwide distribution network.
The proposal is currently being discussed with state-run oil marketing companies—Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. The deliberations are still at an early stage and no final decision has been taken.
The move comes amid continuing concerns among motorists about E20 petrol, which contains 20% ethanol and has become the standard petrol blend at fuel stations across the country.
Under the option being examined, premium 95-octane petrol could be sold as E10, allowing owners of older vehicles to access a lower-ethanol fuel through infrastructure already used for premium petrol.
Options are being looked at in order to offer the more appropriate E10 fuel for older vehicles and allay the consumer concerns. 95-octane petrol, which is sold at a higher price, is among the alternatives under consideration.
The government and oil companies are also assessing whether consumers would favour a premium-priced E10 product or a more affordable regular E10 option.
Why E10 Is Back in the Spotlight
The debate over E10 has intensified as concerns about E20 continue, especially among owners of older vehicles.
The Centre has maintained that E20 does not cause widespread damage to vehicles. In July, the government said vehicles designed for E10 could experience a marginal 3–5% reduction in fuel efficiency when using E20, while stating that there was no evidence of widespread engine failures or vehicle breakdowns caused by ethanol blending.
Despite these assurances, motorists and consumer groups have continued to raise concerns about mileage, vehicle compatibility and the long-term impact of higher ethanol blends. Vehicles sold before April 2023 were generally certified for E10, according to reports, making compatibility a particular concern for owners of older models.
Because ethanol contains less energy per unit than petrol, higher ethanol blends can result in reduced fuel efficiency. Industry assessments and studies have suggested that the mileage impact of E20 may be greater than that of E10, although the actual difference depends on the vehicle and driving conditions.
The issue gained further attention after Chief Economic Adviser V. Anantha Nageswaran recently argued that a lower-ethanol petrol option should be available alongside E20. He called for E10 to be restored at fuel stations as an additional choice for motorists, particularly those with older vehicles.
Premium Petrol Could Offer a Practical E10 Solution
Using premium petrol as the vehicle for E10 could help overcome one of the key challenges involved in bringing back a separate E10 fuel supply.
Indian Oil’s XP95, BPCL’s SPEED and HPCL’s Power95 are already marketed as premium 95-octane petrol. These products currently contain E20 and are formulated with additives designed to support combustion, clean engine components and provide corrosion protection.
Premium petrol now accounts for around 15% of OMC petrol sales, compared with about 4% in March. Their increased popularity has been linked partly to motorists seeking alternatives amid concerns about E20.
These fuels are available at around 90,000 public-sector petrol pumps and are priced at roughly ₹110–115 per litre in Delhi, compared with approximately ₹102 per litre for regular petrol.
Fuel dealers believe existing premium-petrol infrastructure could make the introduction of E10 relatively simple.
Monty Sehgal, national spokesperson for the Federation of All India Petroleum Traders, said that OMCs could provide 95-octane branded fuel with a 10% ethanol blend without making major changes to tanks or dispensing equipment.
Prashant Sinha, a petrol pump owner in Patna, similarly pointed out that separate storage chambers are already available for premium 95-octane petrol and could potentially be used for E10.
By contrast, bringing back a separate nationwide E10 fuel stream would require additional storage, transportation and distribution infrastructure.
Government Weighs Logistics Against Consumer Choice
The petroleum ministry said in July that maintaining separate nationwide supply chains for pure petrol, E10 and E20 would pose significant logistical challenges, increase handling costs and complicate inventory management.
The ministry has also distinguished premium petrol from a separate E10 fuel stream, noting that premium fuels are niche products sold in comparatively limited volumes rather than being nationwide base-fuel categories.
Against this backdrop, offering E10 through existing premium-petrol infrastructure could provide a compromise—giving owners of older vehicles access to lower-ethanol fuel without requiring a completely separate nationwide distribution network.
Consumer groups, however, are pushing for greater choice at fuel stations. Consumer VOICE managing trustee Ashim Sanyal said that motorists should have access to fuel compatible with their vehicles, particularly older models. He also stressed that any E10 product should be clearly labelled and made widely available.
India’s ethanol-blending programme began with a pilot initiative in 2001 and has expanded steadily over the years. Ethanol blending stood at around 1.53% in 2013–14 before rising to the current E20 level.
If approved, a premium E10 option could provide a middle ground between the government’s ethanol-blending objectives and growing consumer demand for fuel suited to older vehicles.
