New Delhi: The government Tuesday told the Supreme Court that the country’s 20% ethanol blending programme in petrol is still an ongoing experiment and the impact of the policy would become clearer by next year. The remarks come amid a wider debate and concerns over the programme, with many voicing worries that increased amounts of ethanol blending could damage older vehicles while also reducing fuel efficiency. Meanwhile, the government has tried to placate such fears by pointing out that hard evidence to link E20 petrol to mechanical damage does not exist and that the policy would be beneficial for India’s energy security, farmers and the environment at large.
The top 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) — BP CL, Hindustan Petroleum Corporation Limited and Indian Oil Corporation — to consider a request by a distillery seeking an increase in its ethanol allocation before the tender process was finalised. BPCL told the court that the order could have wider implications for the government’s target of achieving 20% ethanol blending in petrol. 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.
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.