The Centre informed the Supreme Court on Tuesday that India’s 20% ethanol blending programme in petrol remains an ongoing experiment, with a clearer understanding of its impact expected by next year.
The statement comes amid continuing debate over the initiative, as critics have raised concerns that higher ethanol content could affect older vehicles and reduce fuel efficiency.
The government, however, has sought to allay these concerns, maintaining that there is no concrete evidence linking E20 fuel to mechanical damage. It has also highlighted the programme’s potential benefits for India’s energy security, farmers, and environmental goals.
The Supreme Court was hearing a petition filed by Bharat Petroleum Corporation Limited (BPCL) against a Karnataka High Court order related to ethanol allocation for the 2025–26 supply year.
In an order dated June 23, the Karnataka High Court directed oil marketing companies—BPCL, Hindustan Petroleum Corporation Limited, and Indian Oil Corporation—to consider a distillery’s request for increased ethanol allocation before finalising the tender process.
BPCL argued before the apex court that the order could have broader consequences for the government’s objective of achieving 20% ethanol blending in petrol.
Representing the Centre, Attorney General R. Venkataramani said ethanol allocation had already been completed in October 2025 and supply agreements had been finalised. He cautioned that revisiting individual allocations could disrupt the nationwide blending programme.
“The ethanol supply contracts had already been finalised in October 2025. Similar petitions are pending before several high courts. This will affect the national policy,” he told the court.
He further stated that the government was effectively testing the 20% ethanol blending model and expected to assess its results by next year.
Venkataramani argued that altering one supplier’s allocation could encourage similar demands from others, potentially resulting in multiple legal disputes and disruptions to the supply chain.
He noted that BPCL, which coordinates the ethanol-blended petrol programme, had received cumulative supply offers of approximately 1,759 crore litres following the tender process.
Seeking permission to file a transfer petition, the Attorney General said the matter needed resolution before October, when ethanol supply contracts are due for renewal.
“If I go before the division bench and then again to other high courts, it will be delayed,” he said.
Following the hearing, Venkataramani clarified to India Today TV that the decision to maintain a 20% ethanol blend is a policy choice that is unlikely to be reversed.
He added that the quantity of ethanol supplied to companies may fluctuate depending on demand and other market factors.
India met its target of achieving 20% ethanol blending in petrol in 2025, five years ahead of schedule. Oil marketing companies began nationwide distribution of ethanol-blended petrol from April 1.
The government has since set a new goal of increasing ethanol blending in petrol to 30% by 2030.
The court hearing came days after the Union Oil Ministry defended the ethanol blending programme as safe, consumer-friendly, and economically advantageous, dismissing concerns that E20 fuel could affect vehicle insurance validity.
In a June 24 statement, the ministry said claims suggesting E20 fuel could void insurance coverage had been reviewed with stakeholders and found to be unfounded.
The ministry noted that ethanol blending is a widely adopted practice globally and is already in use in countries such as the United States, Brazil, and Japan.
It also stated that the programme has helped India save more than ₹1.4 lakh crore in foreign exchange by lowering crude oil imports.
According to the ministry, ethanol blending contributes significantly to strengthening India’s energy security, reducing carbon emissions, and supporting the country’s transition toward cleaner mobility. It reiterated that the programme would continue to be implemented in a safe, transparent, and consumer-focused manner, guided by scientific evidence and stakeholder consultations.
