Is India's Ethanol Blending Program a Boon or a Bane? Supreme Court Weighs In
Supreme Court Reviews Ethanol Blending Policy
New Delhi: On Tuesday, the government informed the Supreme Court that the ongoing ethanol blending initiative, which aims for a 20% ethanol mix in petrol, is still in its experimental phase, with clearer outcomes expected by next year. This announcement comes amidst growing concerns regarding the potential adverse effects of higher ethanol levels on older vehicles and overall fuel efficiency. To address these worries, the government emphasized that there is no substantial evidence linking E20 petrol to mechanical failures, asserting that the initiative would enhance India's energy independence, support farmers, and benefit the environment.
The Supreme Court was reviewing a petition from Bharat Petroleum Corporation Limited (BPCL), which contested a Karnataka High Court ruling related to ethanol distribution for the 2025-26 supply cycle. The High Court's June 23 ruling instructed Oil Marketing Companies (OMCs) — including BPCL, Hindustan Petroleum Corporation Limited, and Indian Oil Corporation — to evaluate a distillery's request for increased ethanol allocation prior to finalizing the tender process. BPCL argued that this ruling could significantly impact the government's goal of achieving 20% ethanol blending in petrol.
Attorney General R. Venkataramani, representing the government, stated that the ethanol allocation process had been concluded in October 2025, with supply contracts already established. He cautioned that reopening individual allocations could disrupt the nationwide initiative. Venkataramani remarked, "The ethanol supply contracts were finalized in October 2025. Similar petitions are pending in various high courts, which could affect national policy." He further noted, "The government is experimenting with 20% ethanol blending, and we expect results by next year."
Venkataramani also expressed concerns that altering one supplier's allocation could lead to similar demands from others, resulting in numerous litigations and complications in the supply chain. He mentioned that BPCL, which oversees the ethanol-blended petrol program, had received supply offers totaling approximately 1,759 crore liters following the tender process. He requested permission to file a transfer petition, arguing that the matter needed resolution before October, when the ethanol supply contracts would be up for renewal. "If I approach the division bench and then other high courts, it will cause delays," he stated.