India may need to rethink its one-fuel approach to petrol, with Chief Economic Adviser V Anantha Nageswaran calling for a lower-ethanol option for consumers. The suggestion comes amid a growing debate over E20 petrol. The fuel contains 20% ethanol and has now become the standard petrol option across the country.

Nageswaran’s remarks are among the strongest calls from a senior government official for greater choice in petrol grades. The proposal could particularly benefit owners of older vehicles that were not designed for high-ethanol fuel.

Why Is E20 Petrol Facing Questions?

India has pushed ethanol blending to cut its dependence on imported crude oil. It also aims to support farmers and reduce emissions. E20 is a key part of this plan. Since April 1, it has been the only petrol variant available for sale at fuel stations nationwide.

The policy has helped India expand the use of domestically produced ethanol. It has also created a larger market for agricultural products used in ethanol production. However, the shift has raised concerns among some vehicle owners.

Owners of older and non-BS-VI vehicles have reported lower mileage and changes in vehicle performance after using E20. There have also been concerns about the long-term impact of higher ethanol content on some vehicle components.

Government Says Modern Cars Can Handle E20

The government has repeatedly rejected claims that E20 is broadly damaging vehicles. Officials and oil companies have said modern vehicles are designed and tested to work with higher ethanol blends. They have also defended E20 as part of India’s long-term energy strategy. The government says higher ethanol use can reduce India’s oil import bill while supporting cleaner energy and domestic production.

Could Lower-Ethanol Petrol Return?

The CEA’s suggestion could give older vehicle owners another option. A lower-ethanol petrol grade could allow older cars and two-wheelers to use fuel better suited to their engines. At the same time, newer vehicles could continue using E20. This could offer a middle path between India’s ethanol targets and consumer concerns. However, bringing back multiple petrol grades would not be simple.

Why Multiple Petrol Grades Could Be Difficult

The Oil Ministry has argued that supplying different petrol grades would require major changes to the existing fuel network. Separate fuels would need dedicated storage tanks, transportation systems and dispensing equipment. Oil marketing companies could also face higher operating costs. For this reason, the government has preferred a uniform E20 supply across the country.

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