Centre may reintroduce E10 petrol amid E20 woes
What's the story
In light of consumer concerns over E20 petrol, the Indian government is considering the reintroduction of E10 fuel. The Union Petroleum Ministry is in talks with state-owned oil marketing companies (OMCs) to explore if branded fuels like XP95, Speed, and Power95 can be sold in an E10 formulation. This would eliminate the need for separate storage and dispensing infrastructure for E10.
Fuel options
Return of E10 on the cards
The return of E10 is on the cards, but it's not clear if it will be offered as a premium petrol or regular petrol.
The move comes as consumers continue to raise concerns about the adverse effects of E20 petrol on older engines and mileage.
Over the last few months, there have been increasing demands for E10 petrol, which is seen as more suitable for older vehicles.
Mileage impact
Gadkari on impact of E20 petrol
Road Transport and Highways Minister Nitin Gadkari has said that E20 petrol can reduce fuel economy by 2% to 6%, depending on the vehicle category and vintage.
However, he also stressed that tests for engine durability on a dynamometer and on-road vehicle tests have not shown any failures due to E20.
Gadkari further claimed that E20 fuel offers better acceleration, improved ride quality, and about 30% lower carbon emissions than its predecessor, E10.
Fuel prices
What about the price?
High-octane petrol variants like Octane 95, XP95, Speed, and Power95 are priced at ₹110-115 per liter in Delhi. This is higher than the regular petrol price of ₹102/liter.
Despite the higher cost, Octane 95 has seen a significant increase in sales share from 4% in March to around 15% now.
The fuel contains the same E20 blend as regular petrol but with special chemical additives for improved combustion and performance.
Fuel retailers' view
Providing '95 octane' branded fuels with 10% ethanol is easy
Fuel retailers have suggested that offering E10 through the existing Octane 95 petrol variant would be a simple solution.
Monty Sehgal, national spokesperson for the Federation of All India Petroleum Traders, said "Providing '95 Octane' branded fuels with 10% ethanol is quite easy for OMCs."
However, reintroducing E10 as a standalone fuel would require major infrastructure investments from OMCs.
Fuel choice
Consumer unions call for availability of all ethanol mixes
Consumer unions have called for the availability of all ethanol mixes, giving consumers the power to choose their preferred fuel.
Amarender Reddy, president of the Telangana Petroleum Dealers Association, said if there's an added cost that pumps have to bear, government support should be provided for infrastructure upgrades.
Ashim Sanyal, managing trustee of Consumer VOICE, also stressed on ensuring wide availability and clear labeling at fuel stations if E10 is reintroduced.