New Delh, June 30: The Union Government has told the Supreme Court that the nationwide rollout of E20 fuel is still being evaluated and that its full impact will become clear next year, even as it maintained that there is no conclusive evidence that 20 percent ethanol blended petrol adversely affects vehicle engine performance.
The clarification came during the hearing of a petition filed by Bharat Petroleum Corporation Limited (BPCL) challenging a Karnataka High Court order related to ethanol allocation for the 2025–26 supply year.
Appearing for the Centre, Attorney General R. Venkataramani said the government is implementing the 20 percent ethanol blending programme as part of a policy initiative and that the results of the exercise are expected to be assessed next year.
He argued that there is no strong scientific evidence showing that E20 fuel damages engine efficiency. He added that the ethanol blending programme is expected to strengthen India’s energy security, benefit farmers by creating additional demand for agricultural produce and reduce carbon emissions.
The Karnataka High Court, in its June 23 order, directed Oil Marketing Companies (OMCs) to consider a distillery’s request for an increase in ethanol allocation before finalising the supply process. BPCL challenged the order, arguing that it could affect the Centre’s target of achieving 20 percent ethanol blending in petrol.
The Attorney General informed the Supreme Court that ethanol supply agreements for the 2025–26 supply year had already been finalised in October 2025. He also pointed out that similar petitions are pending before several High Courts and warned that changes in allocations to one supplier could trigger multiple legal challenges, disrupting the national ethanol supply chain.
According to the Centre, BPCL, which coordinates the ethanol blending programme, has received supply offers of nearly 1,759 crore litres following the tender process.
After the hearing, Venkataramani clarified that the government’s policy of 20 percent ethanol blending remains unchanged. He said ethanol allocations to suppliers may vary depending on demand and other operational factors.
India achieved its target of 20 percent ethanol blending in petrol ahead of schedule, with Oil Marketing Companies commencing nationwide supply of E20 fuel from April 1. The Centre has now set a new target of increasing ethanol blending in petrol to 30 percent by 2030.
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