NEW DELHI: The Union government informed the Supreme Court on Tuesday that India’s 20% ethanol blending programme (E20) in petrol is an ongoing experiment, with its full impact becoming clear by next year. The Centre’s submission comes amid public concerns that increased ethanol blending might reduce fuel efficiency or cause mechanical damage to older vehicles.
Countering these apprehensions, the government stated there is no empirical evidence linking E20 fuel to engine damage. It maintained that the policy is vital for India’s energy security, agricultural sector, and environmental sustainability. Last week, the Union Ministry of Petroleum and Natural Gas reiterated that ethanol blending is a globally established practice successfully deployed in nations like the United States, Brazil, and Japan.
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The Supreme Court was presiding over a plea moved by state-owned Bharat Petroleum Corporation Limited (BPCL). The public sector undertaking (PSU) is challenging a Karnataka High Court directive regarding ethanol allocation for the 2025–26 supply year.
In its June 23 order, the High Court directed Oil Marketing Companies (OMCs) comprising BPCL, Hindustan Petroleum Corporation Limited (HPCL), and Indian Oil Corporation Limited (IOCL) to consider a private distillery’s request for an increased ethanol quota before finalizing the tender process. BPCL argued before the apex court that such localized interventions could disrupt the national target of achieving uniform 20% ethanol blending.
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Appearing on behalf of the Central government, Attorney General R. Venkataramani stated that the nationwide ethanol allocation process was concluded in October 2025 and supply contracts were fully executed. He warned that adjusting individual quotas at this stage would destabilize the entire program.
“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,” the Attorney General submitted to the bench. “The government is trying to experiment with 20% ethanol blending. We will have results of that by next year.”
Venkataramani argued that modifying one supplier’s quota would trigger a cascade of similar demands from other distilleries, leading to widespread litigation and severe supply chain delays. He disclosed that BPCL, which coordinates the national ethanol-blended petrol initiative, had received cumulative supply offers totaling approximately 1,759 crore litres during the initial tender phase.
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Seeking permission to file a comprehensive transfer petition to consolidate all related high court cases, Venkataramani emphasized that the legal question must be resolved before October 2026, when the current ethanol supply contracts are scheduled for renewal. “If I go before the division bench and then again to other high courts, it will be delayed,” he added.
Insurance Concerns Dismissed Amid ₹1.4 Lakh Crore Forex Savings
India successfully met its 20% ethanol blending target in 2025, reaching the milestone five years ahead of its original timeline. OMCs launched the nationwide distribution of E20 fuel on April 1. Following this milestone, the government established a subsequent target to scale ethanol blending in petrol to 30% by 2030 (E30).
Tuesday’s apex court hearing follows a June 24 clarification by the Union Oil Ministry, which dismissed viral claims suggesting that the use of E20 fuel could invalidate standard motor vehicle insurance policies. Following consultations with industry stakeholders, the Ministry rejected these rumors, labeling the blending program as safe, consumer-friendly, and economically beneficial.
According to ministerial data, the domestic ethanol blending program has successfully saved India over ₹1.4 lakh crore in foreign exchange by significantly curbing crude oil imports. The Ministry reaffirmed that the transition toward cleaner mobility will continue to expand transparently, guided by scientific evidence and structured stakeholder consultations.
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