Ethanol blending is ongoing experiment, impact to be known by next year: Govt tells SC

The union government told the Supreme Court on Tuesday that the country’s 20% ethanol blending programme in petrol is still an ongoing experiment the impact of which would become clear by the next year. The government’s statement in the top court comes amid concerns over the increased ethanol blending reducing fuel efficiency or damaging older vehicles.

The government has tried to placate such fears by pointing out that there is no hard evidence to link E20 petrol to mechanical damage and that the policy would be beneficial for India’s energy security, farmers and the environment at large. Last week, the Union Oil Ministry had said that ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the US, Brazil, and Japan.

The Supreme Court was hearing a plea filed by state-owned Bharat Petroleum Corporation Limited (BPCL) challenging a Karnataka High Court order concerning ethanol allocation for the 2025-26 supply year.

In its June 23 order, the High Court had directed Oil Marketing Companies (OMCs) — BPCL, Hindustan Petroleum Corporation Limited and Indian Oil Corporation — to consider a request by a distillery seeking increase in its ethanol allocation before the tender process is finalised.

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BPCL told the court that the order could have wider implications for the government’s target of achieving 20% ethanol blending in petrol.

‘Ethanol allocation process already completed in October 2025’

Appearing for the Centre, Attorney General R Venkataramani said the ethanol allocation process had already been completed in October 2025, with supply contracts finalised, and warned that reopening individual allocations could disrupt the nationwide programme.

“The ethanol supply contracts had already been finalised in October 2025. Such petitions are pending before several high courts. This will impact the national policy,” he said.

“The government is trying to experiment with 20% ethanol blending. We will have results of that by next year,” he added.

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Venkataramani argued that granting changes to one supplier’s allocation could prompt similar claims from others, leading to multiple litigations and affecting the supply chain.

He said BPCL, which is coordinating the ethanol-blended petrol programme, had received cumulative supply offers of around 1,759 crore litres following the tender process.

Venkataramani sought permission to file a transfer petition, arguing that the issue needed to be decided before October, when ethanol supply contracts would come up for renewal.

“If I go before the division bench and then again to other high courts, it will be delayed,” he said.

‘Ethanol blending a globally accepted practice’

India achieved its target of blending 20% ethanol in petrol in 2025, five years ahead of schedule. Oil marketing companies started supplying ethanol-blended petrol across the country since April 1. The government has now set a target of increasing ethanol blending in petrol to 30% by 2030.

Tuesday’s hearing came days after the Union Oil Ministry said the ethanol blending programme was “safe, consumer-friendly and economically beneficial”, rejecting concerns that the use of E20 fuel could impact vehicle insurance coverage.

In a statement on June 24, the Ministry said claims suggesting that E20 fuel could invalidate insurance policies had been examined with stakeholders and were found to be incorrect.

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“Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the US, Brazil, and Japan,” the ministry said.

The ethanol blending programme helped India save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports, it added.

“Ethanol blending plays an important role in enhancing India’s energy security, reducing carbon emissions and advancing India’s transition towards cleaner mobility,” the ministry said and reiterated that the programme would continue to be implemented in a “safe, transparent and consumer-centric manner” based on scientific evidence and consultations with stakeholders.