E20 petrol rollout is still an experiment; results expected by next year: Govt to SC

The Centre on Tuesday (June 30) informed the Supreme Court that its move to blend 20 per cent ethanol with petrol is an ongoing experiment. As for the outcome of the experiment, the government stated that a clearer picture would emerge by next year.

The development comes amid concerns among a section of vehicle users that increasing the quantity of ethanol in petrol could result in engine damage for older vehicles and reduce fuel efficiency.

Centre defends E20

However, the Centre, in a bid to address the concern, has pointed out that there was no concrete evidence of E20 petrol resulting in mechanical damage to vehicles, adding that the move would boost India’s energy security and prove to be beneficial for farmers and the environment.

Also Read: Nitin Gadkari challenges critics of E20 fuel; demands proof of failure

The submission was made by Attorney General R Venkataramani in a petition filed by Bharat Petroleum Corporation Limited (BPCL), challenging a Karnataka High Court order regarding ethanol allocation for the 2025-26 supply year.

According to an India Today report, BPCL argued that the order could impact the government’s policy objective of achieving 20 per cent ethanol blending in petrol.

'Results by next year'

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

Also Read: Gadkari calls anti-E20 fuel campaign 'politically motivated to target him'

Responding to the apex court’s query as to why BPCL did not move the division bench of the Karnataka High Court against the order, Venkataramani said that the contracts for ethanol supply had already been finalised for October 2025, adding that similar petitions were pending before other High Courts.

“This will impact the national policy,” he said. The Attorney General sought permission to file a transfer petition, arguing that the issue needs to be resolved before October, when ethanol supply contracts would be due for renewal.

Policy challenge

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

The hearing comes against the backdrop of the Centre having reportedly met its target of achieving 20 per cent ethanol blending in petrol last year, five years ahead of its original timeline.

Also Read: Will ethanol-blended fuel ruin your engine? India's ethanol push explained

Oil marketing companies have been supplying ethanol-blended petrol across the country since April 1, while the government has now fixed a fresh target of raising the blending level to 30 per cent by 2030.

Ministry dismisses fears

Less than a week before Tuesday's proceedings, the Union Oil Ministry dismissed apprehensions that E20 fuel could affect vehicle insurance, stating that consultations with stakeholders found such claims to be unfounded.

“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 also maintained that the programme had saved over Rs 1.4 lakh crore in foreign exchange by cutting 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.