Centre Defends E20 Program in Supreme Court Amid Legal Dispute Over Ethanol Allocation, Results Expected Next Year

New Delhi: The government told the Supreme Court on Tuesday that the country's 20 percent ethanol blending programme in petrol is still being tested. The full impact of the policy will only become clear next year. The statement came during a hearing on a plea filed by Bharat Petroleum Corporation Limited challenging a Karnataka High Court order on ethanol allocation for the 2025-26 supply year.

What the Karnataka HC had ordered?

The High Court's order on June 23 had directed oil marketing companies BPCL, Hindustan Petroleum Corporation Limited and Indian Oil Corporation to consider a distillery's request for higher ethanol allocation before finalizing the tender process. BPCL had approached the Supreme Court arguing this order could disturb the government's larger E20 target.

What was the Centre's argument in court?

Attorney General R Venkataramani was appeared for the Centre and told the court that the ethanol supply contracts for the year had already been finalized in October 2025. He warned that reopening individual allocations now could disrupt the entire national program. He pointed out that similar petitions are pending in several high courts and any change made for one supplier could trigger a wave of similar claims from others, leading to multiple legal disputes affecting the supply chain. He confirmed that the government is treating the 20 percent ethanol blending push as an ongoing experiment and results will be clearer by next year. He also informed the court that BPCL, which coordinates the ethanol blended petrol program, has received cumulative supply offers of around 1,759 crore litres through the tender process.

Venkataramani sought permission to file a transfer petition, saying the matter needs to be resolved before October when ethanol supply contracts come up for renewal. He said that, going through a division bench and then separately to other high courts would only cause delays.

What the AG had said about policy?

Speaking to India Today TV after the hearing, Venkataramani clarified that the 20 percent ethanol blending policy itself is not going to change. He said only the volume of ethanol made available to companies may move up or down depending on demand and other market factors.

Background on the E20 program?

India achieved its 20 percent ethanol blending target in 2025, five years ahead of the original schedule. Oil marketing companies have been supplying E20 petrol across the country since April 1. The government now wants to push this further to 30 percent by 2030.

How had ministry defended E20 on vehicle insurance concerns?

This Supreme Court hearing came just days after the Union Oil Ministry issued a statement defending the ethanol program. On June 24 the Ministry said the program is safe, consumer-friendly and economically beneficial. It rejected claims that E20 fuel could affect vehicle insurance coverage, saying such claims were examined with stakeholders and found to be incorrect.

What the ministry had said?

The Ministry said ethanol blending is a globally accepted practice followed successfully in countries like the US, Brazil and Japan. It said the program has already helped India save more than Rs 1.4 lakh crore in foreign exchange by cutting down crude oil imports. The Ministry called ethanol blending important for India's energy security, for reducing carbon emissions and for the country's shift towards cleaner mobility. It reiterated that the program will continue to be implemented in a safe, transparent and consumer-centric manner, backed by scientific evidence and ongoing consultation with stakeholders.