The Indian government has firmly dismissed suggestions to reintroduce E10 petrol at fuel stations, emphasizing that such a move would undermine substantial investments in the nation's ethanol blending program. The Ministry of Petroleum and Natural Gas stated that nearly ₹1 lakh crore is invested annually in ethanol production and related infrastructure, financed predominantly by public sector banks.
Protecting Ethanol Investments
Critics of India's current fuel policy have advocated for the availability of E10 fuel (10% ethanol, 90% petrol) to accommodate vehicles sold before April 2023, which may not be fully compatible with the higher E20 blend (20% ethanol, 80% petrol). However, the petroleum ministry highlighted the creation of dedicated ethanol plants, distilleries, storage facilities, and logistics networks designed to meet India's ambitious blending targets.
“If, after creating this capacity, we were to arbitrarily revert to E10, what happens to these investments? What happens to the surplus production capacity? What happens to thousands of crores invested by farmers, cooperatives, entrepreneurs, financial institutions and public sector companies in good faith based on a national policy?” the ministry questioned in a recent release.
The ministry's stance comes amidst political scrutiny, with opposition parties criticizing the government for mandating E20 fuel for over 30 crore non-compliant vehicles.
Logistical Hurdles of Multiple Fuel Grades
Beyond financial implications, the government also cited significant logistical challenges in stocking multiple grades of petrol—pure petrol (E0), E10, and E20—simultaneously across India's vast fuel distribution network. With over one lakh retail outlets supported by extensive refineries, terminals, depots, and pipelines, maintaining diverse fuel streams would complicate inventory management, increase handling costs, and reduce operational efficiency.
While premium pure petrol (E0) is available in select urban areas at a higher price, it is not a nationwide base fuel stream. The ministry clarified that running parallel nationwide supply chains for E0, E10, and E20 would be an entirely different and unfeasible proposition.
India's Ethanol Blending Journey
India's ethanol blending program, initiated over two decades ago, saw slow progress, with blending levels remaining around 1.5% until 2014. The government noted that the automobile industry was consulted extensively during the transition to higher ethanol blends, with discussions for E10 compatibility beginning as early as 2020-21.
India successfully achieved its E10 target in June 2022 and, notably, reached its 20% ethanol blending target in July 2025, five years ahead of the initial 2030 deadline. The ministry underscored that ethanol is not a novel fuel, citing historical examples like Henry Ford's Model T and its use in countries such as Brazil and the United States for decades.
Globally, Brazil is progressing from an E27 to an E30 blend, while the United States maintains a 10% ethanol blend in gasoline. The European Union has adopted E10 as its baseline blend, though countries like China and Russia do not have similar mandates.