'Experiment' With E20 Blending to Show Results by Next Year, Govt. Tells SC

The government on Tuesday defended its 20 per cent ethanol blending programme before the Supreme Court during a hearing on ethanol allocation, even as it later clarified that it had not described the policy as an "experiment", rejecting reports suggesting otherwise, according to India Today. The clarification from the Ministry of Law and Justice came after reports stated that Attorney General R. Venkataramani had characterised the E20 programme as an "ongoing experiment" whose outcomes would become clearer by next year. 

The ministry said the government had made no such submission before the court and that reports suggesting otherwise did not accurately reflect its arguments.

The hearing took place against the backdrop of continuing debate over India's ethanol blending programme. Experts have raised concerns that higher ethanol content could affect older vehicles and reduce fuel efficiency. 

The government, however, has consistently maintained that there is no conclusive evidence linking E20 petrol to mechanical damage and has argued that the programme strengthens India's energy security, supports farmers and delivers environmental benefits.

The Supreme Court was hearing a petition filed by Bharat Petroleum Corporation Limited (BPCL) challenging a Karnataka High Court order relating to ethanol allocation for the 2025-26 supply year.

In its June 23 order, the High Court directed Oil Marketing Companies (OMCs), including BPCL, Hindustan Petroleum Corporation Limited and Indian Oil Corporation, to consider a distillery's request for an increase in ethanol allocation before the tender process was concluded. BPCL argued that the order could have wider implications for the government's target of achieving 20% ethanol blending in petrol.

During the hearing, Attorney General R. Venkataramani told the court that ethanol supply contracts had already been finalised in October 2025 and warned that reopening individual allocations could disrupt the nationwide programme.

Venkataramani argued that revising allocations for one supplier could trigger similar claims from others, resulting in multiple legal challenges and disrupting the ethanol supply chain. He informed the court that BPCL, which coordinates the ethanol-blended petrol programme, had received cumulative supply offers of around 1,759 crore litres following the tender process.

He also sought permission to file a transfer petition, stating that the matter should be resolved before October, when ethanol supply contracts are due for renewal.

Following the hearing, Venkataramani was quoted as saying by India Today TV that the "20 per cent mix of ethanol is a policy decision that is not likely to change."

Also read: Govt. Dismisses E20 Fuel Insurance Concerns, Calls Ethanol Blending 'Safe': Report

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

India hit nationwide 20 per cent ethanol blending in petrol in 2025, five years ahead of its original target, with oil marketing companies beginning nationwide supply of E20 fuel from April 1. The government has since announced an objective of increasing ethanol blending to 30 per cent by 2030.

The hearing also comes days after the Ministry of Petroleum and Natural Gas reiterated that the ethanol blending programme is "safe, consumer-friendly and economically beneficial", dismissing claims that the use of E20 fuel could affect vehicle insurance validity.