New Delhi: The Central government on Tuesday informed the Supreme Court that India’s 20 per cent ethanol blending programme (E20) is still being evaluated and that clearer results regarding its long-term impact are expected by next year. The submission came amid growing concerns over the effect of higher ethanol blends on older vehicles and fuel efficiency.
The government, however, reiterated that the policy of blending 20 per cent ethanol with petrol will continue and remains an important component of India’s energy security and clean mobility strategy.
Centre defends ethanol blending policy
The Supreme Court was hearing a petition filed by Bharat Petroleum Corporation Limited (BPCL) challenging a Karnataka High Court order concerning ethanol allocation for the 2025-26 supply year.
Appearing for the Centre, Attorney General R. Venkataramani told the court that the ethanol blending initiative was being implemented on a large scale and its outcomes would become clearer over time.
“The government is trying to experiment with 20 per cent ethanol blending. We will have results of that by next year,” he submitted before the court.
He argued that reopening ethanol allocations after supply contracts had already been finalised could disrupt the nationwide blending programme.
Allocation dispute reaches Supreme Court
The case stems from a Karnataka High Court order dated June 23 directing Oil Marketing Companies (OMCs), including BPCL, Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation (IOC), to consider a distillery’s request for increased ethanol allocation before the tender process was completed.
BPCL argued that altering allocations at this stage could affect the implementation of the national ethanol blending programme.
According to the Attorney General, ethanol supply contracts for the current cycle had already been finalised in October 2025, and allowing changes for one supplier could trigger similar claims from others, resulting in multiple legal disputes and disruptions to the supply chain.
He also sought permission from the Supreme Court to file a transfer petition so that similar matters pending before different High Courts could be heard together before the next round of supply contracts is renewed.
Government says E20 policy will continue
Following the hearing, Attorney General Venkataramani clarified that while ethanol allocations to individual companies may vary depending on demand and other operational factors, the government’s decision to implement 20 per cent ethanol blending is unlikely to change.
He stated that the blending percentage remains a policy decision and continues to be part of the Centre’s long-term energy strategy.
Government rejects concerns over E20 fuel
The Centre has repeatedly defended the E20 programme against concerns that higher ethanol content could damage older vehicles or reduce fuel efficiency.
Last week, the Union Ministry of Petroleum and Natural Gas stated that there is no scientific evidence establishing that E20 petrol causes mechanical damage to compatible vehicles.
The ministry also dismissed reports suggesting that using E20 fuel could invalidate vehicle insurance policies, saying such claims had been examined with stakeholders and found to be incorrect.
According to the ministry, ethanol blending has become an internationally accepted practice and is already being implemented successfully in countries including the United States, Brazil and Japan.
India targets higher ethanol blending
India achieved its target of 20 per cent ethanol blending in petrol in 2025, five years ahead of its original schedule.
Oil Marketing Companies began supplying E20 petrol nationwide from April 1, and the government has now set a target of increasing ethanol blending to 30 per cent by 2030.
The Centre has said the programme has already helped save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports while also contributing to lower carbon emissions and supporting farmers through increased ethanol production.
Conclusion
While concerns over E20 fuel continue to be debated, the Centre has maintained that the policy will remain in place and will continue to be guided by scientific evidence and stakeholder consultations. The Supreme Court’s decision on the ethanol allocation dispute could have wider implications for the implementation of the national blending programme.