Bengaluru: The Karnataka government has raised concerns over alleged excessive ethanol blending in petrol after laboratory tests found ethanol content exceeding the prescribed 20% level in several samples collected from major oil marketing companies (OMCs) across seven districts.

Food, Civil Supplies, Consumer Affairs and Legal Metrology Minister Rizwan Arshad said on Friday that one sample collected from an Indian Oil Corporation (IOCL) outlet recorded ethanol content of 31.2%, while a sample from a Hindustan Petroleum Corporation (HPCL) outlet contained 30.5%.

The samples were collected from Bengaluru, Kolar, Chikkaballapura, Bengaluru Rural, Ramanagara, Mangaluru and Tumakuru. A total of 14 samples from IOCL, HPCL, Bharat Petroleum Corporation (BPCL), Nayara Energy, Shell and Mangalore Refinery and Petrochemicals (MRPL) were tested at National Accreditation Board for Testing and Calibration Laboratories (NABL)-accredited and ISO-certified laboratories.

The findings have prompted the state government to question the quality of petrol being supplied to consumers and seek action against companies found violating blending standards.

Six samples record ethanol levels above 25%

According to the minister, the laboratory tests found ethanol content of 31.2% in an IOCL sample and 30.5% in an HPCL sample. Other samples also recorded levels significantly above 20%.

An HPCL sample contained 27% ethanol, while a BPCL sample recorded 26.5%. A Nayara Energy sample showed 26.1%, and a Shell sample contained 25.5%.

The lowest reading was 13.5% in another Shell sample. Overall, only two of the 14 samples recorded ethanol content below 20%, according to the department.

The state government said the exercise was intended to examine the actual ethanol content in petrol supplied by major oil companies. It described Karnataka as the first state government to undertake such an exercise and said the findings would be submitted to the Union government.

The results have raised questions about whether the fuel supplied at some outlets conforms to the E20 blending level and whether consumers are receiving accurate information about the fuel they purchase.

Karnataka questions oil companies’ initial test reports

The state government also questioned the initial test reports issued by the in-house laboratories of IOCL and BPCL.

According to the department, the initial reports did not disclose ethanol content, despite it being one of the prescribed parameters for testing petrol. The government subsequently sent the samples to Shriram Research Institute in Bengaluru for further examination.

The institute measured the ethanol content using gas chromatography, a laboratory technique used to identify and quantify components in a mixture.

The minister cited the results from these tests while raising concerns about the quality of petrol supplied by the oil marketing companies.

The state government has indicated that it will continue collecting and testing fuel samples across Karnataka. It has also said that enforcement action would be initiated wherever violations are established under the Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 2005.

Government warns of possible vehicle damage

Arshad said excessive ethanol blending could affect vehicle performance and increase maintenance expenses, particularly for vehicles that are not designed to operate with higher ethanol concentrations.

The state government claimed that 99% of India’s approximately 35 crore vehicles were not built to run on ethanol blends exceeding 20%. It also said that vehicles sold after April 2023 were certified to operate with blends of up to 20%.

The department raised concerns about the readiness of fuel dispensing infrastructure as well. According to the government, most dispensing units at petrol pumps were designed to handle petrol containing up to 15% ethanol.

The minister argued that higher ethanol content could contribute to reduced mileage and additional servicing and repair costs for consumers. He alleged that ordinary vehicle owners were bearing the financial consequences while oil marketing companies and automobile manufacturers continued to make profits.

Calling the situation a breach of consumer trust, Arshad questioned the Centre’s decision to promote higher ethanol blending without ensuring that vehicles and fuel infrastructure were adequately prepared.

However, the possible impact of the tested samples on individual vehicles would depend on factors including vehicle compatibility, actual fuel composition and operating conditions. The figures cited by the state government represent its concerns and estimates rather than independently established losses for every motorist.

State estimates annual consumer burden at ₹1.01 lakh crore

The minister estimated that consumers could face an annual financial burden of nearly ₹1.01 lakh crore due to reduced mileage and vehicle repair expenses.

According to the state government’s calculation, a 10% reduction in mileage could result in estimated annual losses of around ₹62,000 crore. A further ₹39,000 crore was attributed to vehicle repairs.

Together, the two estimates amount to approximately ₹1.01 lakh crore annually.

These figures were presented by the Karnataka government and have not been independently established. The department has not provided a detailed methodology or independent assessment supporting the estimates in the information released.

The government has argued that consumers should not be made to bear additional expenses arising from fuel quality issues or the transition to higher ethanol blends without adequate safeguards.

Karnataka seeks compensation fund and choice of fuel

The state government has sought action against oil marketing companies found supplying petrol with ethanol content exceeding 20%.

It has also demanded the creation of an E20 spoilage fund to compensate consumers whose vehicles are damaged due to the use of higher ethanol blends. The proposed fund would provide a time-bound compensation mechanism, with authorised vehicle service centres playing a role in assessing and processing claims.

Another major demand is a nationwide requirement for petrol pumps to clearly display the ethanol blend percentage in the fuel being sold.

The government has also called for consumers to be given a choice between available petrol variants, including E10 and E20, instead of being restricted to a single option.

“We want the common man to have the option to buy E10, E20 or E30. The ethanol blend percentage should be displayed at every fuel station,” Arshad said.

The minister has sought clarification from the Union ministers for Road Transport and Highways and Petroleum and Natural Gas regarding the actual ethanol content of petrol supplied to consumers.

Karnataka to continue fuel quality inspections

The state government has said that fuel quality testing will continue across Karnataka and that enforcement action will follow wherever violations are established.

The findings from the 14 samples will be submitted to the Centre for further examination. The demands for compensation, transparent fuel labelling and a choice of ethanol blends are also expected to form part of the state’s representation to the Union government.

The issue has brought fuel quality, vehicle compatibility and consumer protection into focus. While ethanol blending is part of the country’s fuel policy, Karnataka has called for greater transparency and safeguards to ensure that motorists are not exposed to unexpected costs.

The Union government’s response, along with any action taken by the oil marketing companies, will be important in determining how the concerns raised by Karnataka are addressed.