Govt tells SC E20 ethanol blending programme still under evaluation, says results expected by next year

The government defended its ethanol blending policy before the Supreme Court, saying E20 remains under evaluation and supports India's energy security goals

PGurus Newsdesk

June 30, 2026

The Centre told the Supreme Court that India's E20 ethanol blending programme is still under evaluation, with long-term results expected by next year

Centre tells SC reopening ethanol allocations could disrupt the nationwide E20 programme as it defends the policy’s long-term benefits

The Central government on Tuesday informed the Supreme Court that India’s 20 per cent ethanol blending (E20) programme is still being evaluated and that its long-term impact is expected to become clearer by next year.

The submission came during a hearing on a plea filed by Bharat Petroleum Corporation Limited (BPCL) challenging a Karnataka High Court order related to ethanol allocation for the 2025-26 supply year.

The government’s remarks come amid ongoing discussions over the E20 programme, with concerns raised by some stakeholders regarding its potential impact on older vehicles and fuel efficiency. The Centre, however, maintained that there is no conclusive scientific evidence linking E20 petrol to mechanical damage and reiterated that the policy supports India’s energy security, environmental goals and farmers’ income.

Centre cautions against disrupting ethanol policy

The Supreme Court was hearing BPCL’s challenge to a June 23 Karnataka High Court order directing Oil Marketing Companies (OMCs), including BPCL, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL), to consider a distillery’s request for a higher ethanol allocation before finalising the tender process.

Appearing for the Centre, Attorney General R. Venkataramani told the court that ethanol supply contracts had already been finalised in October 2025 and reopening allocations could affect the nationwide ethanol blending programme.

“The ethanol supply contracts had already been finalised in October 2025. Such petitions are pending before several high courts. This will impact the national policy.”

He further said: “The government is trying to experiment with 20 per cent ethanol blending. We will have results of that by next year.”

Venkataramani argued that granting relief to one supplier could trigger similar claims from others, resulting in multiple legal challenges and disrupting the supply chain.

According to the Centre, BPCL, which is coordinating the ethanol blending programme, received cumulative supply offers of around 1,759 crore litres during the tender process.

The Attorney General also sought permission to file a transfer petition before the Supreme Court, stating that a uniform decision was required before ethanol supply contracts are renewed later this year.

“If I go before the division bench and then again to other high courts, it will be delayed.”

Centre says E20 policy remains unchanged

Following the hearing, Attorney General Venkataramani clarified that the government’s commitment to the E20 programme remains unchanged.

“How much ethanol is made available to companies may go up or down depending on demand and other factors.”

India achieved its target of 20 per cent ethanol blending in petrol last year, five years ahead of schedule, with oil marketing companies rolling out E20 fuel across the country from April 1.

The government has now set a target of increasing ethanol blending in petrol to 30 per cent by 2030.

Govt reiterates E20 is safe

The hearing came days after the Ministry of Petroleum and Natural Gas reiterated that the ethanol blending programme is “safe, consumer-friendly and economically beneficial.”

The ministry had dismissed claims that using E20 fuel could affect vehicle insurance coverage, saying such concerns had been examined in consultation with stakeholders and found to be incorrect.

According to the ministry, ethanol blending has helped India save over Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports while contributing to lower carbon emissions and improved energy security.

The Centre has maintained that the programme will continue to be implemented in a safe, transparent and consumer-centric manner based on scientific evidence and stakeholder consultations.

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