The central government on Tuesday told the Supreme Court that India's ambitious 20% ethanol blending (E20) programme is still in the evaluation stage and its overall impact will be clearer only next year.
The statement came during a hearing in the court in which the use of E20 petrol has come under increased debate about its effect on older vehicles, fuel efficiency and long-term engine performance. While critics have raised questions about how ethanol content could affect a few vehicles, the government has maintained that there is no definitive scientific evidence linking E20 fuel to mechanical damage.
Centre defends National Ethanol Policy
Attorney General R. Venkataramani told the Supreme Court that the country’s ethanol blending programme is a key national policy and that authorities are closely monitoring its implementation.
"The government is trying to experiment with 20% ethanol blending. We will have results of that by next year," Venkataramani said.
He later stated that while the programme is being assessed, the policy itself is not under reconsideration.
The 20% mix of ethanol is a policy decision that is not likely to change. How much ethanol is made available to companies may go up or down depending on demand and other factors," he told India Today TV after the hearing.
Case related to Ethanol Allocation.
The remarks were made as the Supreme Court was hearing a petition filed by Bharat Petroleum Corporation Limited (BPCL) challenging an order of the Karnataka High Court concerning ethanol allocation for the 2025-26 supply year.
In its order dated June 23, the High Court had directed oil marketing companies– BPCL, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL)— to consider a distillery’s request for an increase in its ethanol allocation before finalising the tender process.
BPCL argued before the Supreme Court that changing allocations after contracts had already been awarded could disrupt the implementation of the national ethanol blending programme.
According to the Attorney General, ethanol supply contracts for the current cycle have already been finalised in October 2025 and reopening individual allocations could trigger similar claims from other suppliers across the country.
He told the court that BPCL, which coordinates the ethanol-blended petrol programme, had received cumulative supply offers of around 1,759 crore litres after the tender process.
Venkataramani also sought permission to file a transfer petition, arguing that multiple cases involving similar issues are pending before different High Courts and should be heard together before the next round of supply contracts is renewed in October.
Higher Ethanol Blending.
India achieved its target of 20% ethanol blending in petrol in 2025—five years ahead of schedule—and oil marketing companies began nationwide supply of E20 petrol from April 1.
Based on that, by 2030 the government has an even more ambitious goal of raising ethanol blending to 30% as part of its overall strategy to reduce dependence on imported crude oil and promote cleaner transportation.
Government Rejects concerns about vehicle damage.
The Supreme Court hearing comes less than a week after the Union Ministry of Petroleum and Natural Gas said the ethanol blending programme is safe, consumer-friendly and economically beneficial.
And in a statement on June 24, the ministry denied allegations that the use of E20 petrol could invalidate vehicle insurance or significantly damage engines.
These concerns were examined in consultation with stakeholders and found to be incorrect, the ministry said.
Ethanol blending is a worldwide accepted practice and is already widely used in countries such as the United States, Brazil and Japan, the company said.
The ethanol programme has helped India save more than ₹1.4 lakh crore in foreign exchange by reducing crude oil imports and supporting farmers, reducing carbon emissions and strengthening the country’s energy security, the government said.
The ministry said future ethanol blending programme would be informed by scientific evidence, stakeholder consultations and consumer safety considerations.
With the Supreme Court now hearing issues related to ethanol allocation and the government going back on record to defend the policy, the forthcoming year will provide more clarity on the long-term performance and impact of India's transition towards higher ethanol-blended fuels.
