Government Updates Supreme Court on Ethanol Blending Program for Petrol

The Indian government has informed the Supreme Court about the ongoing ethanol blending program, which aims to mix 20% ethanol in petrol. Amid concerns regarding potential damage to older vehicles and fuel efficiency, the government reassured that there is no solid evidence of harm. Attorney General R. Venkataramani discussed legal challenges related to ethanol allocation, emphasizing the importance of the program for energy security and environmental benefits. The government has achieved its 20% blending target ahead of schedule and aims to increase this to 30% by 2030. The hearing follows the oil ministry's recent statements affirming the program's safety and economic advantages.

By Narendra Chaudhary Jun 30, 2026, 14:48 IST

Government's Ethanol Blending Initiative

On Tuesday, the government informed the Supreme Court that the initiative to blend 20% ethanol into petrol is still in the experimental phase, with clearer results expected by next year. This statement comes amid ongoing debates and concerns regarding the program, particularly fears that higher ethanol content could damage older vehicles and reduce fuel efficiency. In response to these worries, the government emphasized that there is no substantial evidence indicating that E20 petrol harms vehicle mechanical parts, asserting that this policy will benefit India's energy security, farmers, and the environment.

Legal Proceedings and Government's Position

During the proceedings, Attorney General R. Venkataramani presented arguments related to a petition from Bharat Petroleum Corporation Limited (BPCL), which challenged a Karnataka High Court order regarding ethanol allocation for the 2025-26 supply year. The High Court had instructed oil marketing companies, including BPCL, Hindustan Petroleum Corporation Limited (HPCL), and Indian Oil Corporation (IOC), to consider requests from distilleries seeking increased ethanol allocations before finalizing tenders. BPCL argued that the High Court's ruling could impact the government's broader policy goal of blending 20% ethanol into petrol. The Attorney General reiterated that the government is experimenting with the blending process, with results anticipated by next year.

Supreme Court's Inquiry and Future Implications

The Supreme Court questioned why BPCL did not appeal the High Court's decision to a division bench. In response, the Attorney General explained that contracts for ethanol supply have already been established for October 2025, and similar petitions are pending in various High Courts. He noted that this situation could affect national policy. Venkataramani requested permission to file a transfer petition, arguing that a decision is necessary before October to facilitate the renewal of ethanol supply contracts. He expressed concerns about delays if he pursued appeals in multiple courts. Shortly after the hearing, the Attorney General clarified to a media outlet that the 20% ethanol blending policy is a firm decision unlikely to change.

Ethanol Supply and Future Goals

He further mentioned that the amount of ethanol supplied to companies may vary based on demand and other factors. India achieved its goal of blending 20% ethanol in petrol last year, five years ahead of schedule. Oil marketing companies began supplying ethanol-blended petrol nationwide from April 1. The government has now set a target to increase the ethanol blending percentage to 30% by 2030. This hearing occurred less than a week after the central oil ministry described the ethanol blending program as safe, beneficial for consumers, and economically advantageous. The ministry also dismissed concerns that using E20 fuel would affect vehicle insurance coverage, stating that claims suggesting E20 fuel could invalidate insurance policies were investigated and found to be incorrect.