Centre Tells SC Ethanol Blending Is Being Evaluated, But 20% Petrol Mix Will Stay

The Centre on Tuesday told the Supreme Court that India's 20 per cent ethanol blending programme is still an ongoing experiment and its full impact will become clearer by next year.

The submission was made by Attorney General R Venkataramani during the hearing of a petition filed by Bharat Petroleum Corporation Limited (BPCL) challenging a Karnataka High Court order on ethanol allocation for the 2025-26 supply year.

The case has drawn attention because BPCL argued that the High Court order could affect the Centre's larger goal of maintaining 20 per cent ethanol blending in petrol, also known as E20 fuel.

Centre Says E20 Programme Is Still Being Evaluated

During the hearing, the Attorney General told the Supreme Court that the government was continuing to assess the impact of the ethanol blending programme.

"Twenty per cent ethanol blending is something that the government is experimenting with. By next year we will have results," he told the court.

However, he later clarified that the government's 20 per cent ethanol blending policy is not likely to change.

He added that ethanol allocation to oil marketing companies may vary depending on demand and overall availability.

Why BPCL Approached The Supreme Court

BPCL challenged a Karnataka High Court order related to ethanol allocation for the 2025-26 supply year.

During the hearing, the Supreme Court asked why the company had not first approached the division bench of the Karnataka High Court.

Responding to the court, the Attorney General said ethanol supply contracts had already been finalised in October 2025 and similar cases were pending before several High Courts.

He argued that conflicting court orders could affect the implementation of the Centre's national ethanol blending policy.

The Centre has now sought permission to file a transfer petition so similar cases can be heard together before ethanol supply contracts come up for renewal in October.

India Achieved 20% Ethanol Blending Ahead Of Target

India achieved its target of 20 per cent ethanol blending in petrol last year, five years ahead of schedule.

Oil marketing companies began supplying E20 petrol across the country from April 1.

The government has now set a new target of increasing ethanol blending in petrol to 30 per cent by 2030 as part of its long-term energy transition strategy.

Centre Recently Rejected E20 Insurance Claims

The Supreme Court hearing comes days after the Union Oil Ministry rejected claims that using E20 petrol could affect vehicle insurance coverage.

In a statement issued on June 24, the ministry said concerns about E20 fuel invalidating insurance policies had been examined with stakeholders and found to be incorrect.

The ministry also said ethanol blending is already being implemented successfully in countries such as the United States, Brazil and Japan.

According to the government, the ethanol blending programme has helped India save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports.

The Centre has maintained that higher ethanol blending improves energy security, reduces carbon emissions and supports cleaner mobility while continuing to implement the policy through scientific evaluation and stakeholder consultations.