E20 impact to become clearer by next year, govt tells Supreme Court

The government on Tuesday told the Supreme Court that India’s 20 per cent ethanol blending programme in petrol is still an ongoing experiment and that its full impact will become clearer by next year.

The remarks come amid concerns from some motorists and automobile enthusiasts that higher ethanol content could damage older vehicles and reduce fuel efficiency. The government has maintained that there is no hard evidence linking E20 petrol to mechanical damage and says the policy supports energy security, farmers and environmental goals.

Attorney General R Venkataramani made the submission during arguments in a petition filed by Bharat Petroleum Corporation Limited (BPCL) against a Karnataka High Court order on ethanol allocation for the 2025-26 supply year.

BPCL argued that the order could affect the government’s broader objective of achieving 20 per cent ethanol blending in petrol.

“Twenty per cent ethanol blending is something that the government is experimenting with. By next year we will have results,” the Attorney General told the court.

During the hearing, the Supreme Court questioned why BPCL had not approached the division bench of the Karnataka High Court.

Venkataramani said ethanol supply contracts had already been finalised in October 2025 and that similar petitions were pending before multiple high courts.

“This will impact the national policy,” he said.

The Attorney General sought permission to file a transfer petition, arguing that the matter needed to be settled before October, when ethanol supply contracts come up for renewal.

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

Shortly after the hearing, Venkataramani clarified to India Today that the “20 per cent 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 added.

India achieved its target of blending 20 per cent ethanol in petrol last year, five years ahead of schedule. Oil marketing companies started supplying ethanol-blended petrol across the country since April 1.

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

The hearing came less than a week after the Union Oil Ministry said the ethanol blending programme was “safe, consumer-friendly and economically beneficial”, rejecting concerns that E20 fuel could affect vehicle insurance coverage.

In a statement on June 24, the ministry said claims that E20 fuel could invalidate insurance policies had been examined with stakeholders and found to be incorrect.

“Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the US, Brazil, and Japan,” the ministry said.

The ministry said the programme had helped India save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports.

“Ethanol blending plays an important role in enhancing India’s energy security, reducing carbon emissions and advancing India’s transition towards cleaner mobility,” the ministry said, reiterating that the programme would continue to be implemented in a “safe, transparent and consumer-centric manner” based on scientific evidence and consultations with stakeholders.