New Delhi: The Supreme Court of India on Monday dismissed a petition challenging the Central Government’s E20 fuel policy, whichmandates the blending of 20% ethanol with petrol. The ruling paves the way for the Centre to move ahead with its ambitious plan of rolling out E20 petrol nationwide by 2025.
What the policy entails
The E20 fuel policy was introduced as part of India’s broader energy diversification strategy. Under this, petrol is blended with 20% ethanol, a biofuel derived primarily from sugarcane, maize, and other agricultural produce. Currently, most of the country uses E10 fuel — petrol blended with 10% ethanol.
The government’s target is to double this ethanol content within the next year to help reduce dependence on crude oil imports, bring down greenhouse gas emissions, and offer farmers a sustainable market for their crops.
The petition and the court’s response
The dismissed petition had argued that the mandatory use of E20 fuel could harm certain categories of vehicles not designed to run on higher ethanol blends. Concerns were raised over potential damage to engines, higher maintenance costs, and safety risks for motorists.
However, the Supreme Court found no grounds to interfere with the Centre’s policy decision. The bench observed that such measures fell within the executive’s domain and were in line with India’s international commitments to lower carbon emissions.
The court also noted that the government had issued clear guidelines and transition plans for vehicle manufacturers to ensure compatibility with the new blend.
Impact on vehicle owners
According to experts, most modern vehicles sold in India since 2010 are capable of running on petrol blended with up to 20% ethanol. Automobile manufacturers have also been directed to display compatibility details in user manuals and on fuel caps.
Older vehicles, particularly two-wheelers and cars manufactured before 2010, may face performance issues. To address this, oil marketing companies are expected to provide necessary advisories and conduct awareness campaigns for motorists.
Economic and environmental significance
India is the world’s third-largest consumer of crude oil, importing nearly 85% of its requirement. Ethanol blending has the potential to save the country about Rs 30,000 crore in foreign exchange annually once fully implemented.
Environmentally, the policy is projected to reduce carbon monoxide emissions by up to 50% in two-wheelers and 30% in four-wheelers. It is also expected to cut hydrocarbon emissions significantly.
For farmers, increased demand for ethanol promises better income opportunities. By diverting surplus sugarcane and other crops towards ethanol production, the policy is expected to stabilise agricultural prices.
Industry readiness and challenges
While the government is pushing for full-scale rollout by 2025, industry stakeholders have pointed out logistical challenges. India will need to expand its ethanol production capacity, improve storage and blending infrastructure, and ensure consistent supply across states.
Additionally, there are concerns about diverting food crops like maize and sugarcane towards fuel production, which may impact food security and prices. The government has assured that ethanol production will be diversified towards non-food crops and agricultural waste in the long run.
Conclusion
With the Supreme Court dismissing the challenge, the Centre’s E20 policy has received judicial backing. While hurdles remain in terms of infrastructure and older vehicle compatibility, the move is seen as a significant step in India’s green energy transition. The success of the policy will depend on balancing environmental benefits, farmer interests, and consumer concerns.