The Centre on Tuesday told the Supreme Court that India's ambitious programme to blend 20% ethanol with petrol (E20) is still in an experimental phase, with its full impact expected to become clearer next year.
Appearing before the apex court, the government said the E20 programme is being closely monitored and maintained that there is no conclusive evidence so far to suggest that higher ethanol blending causes damage to vehicles. It also made it clear that the policy to achieve 20% ethanol blending will continue despite concerns raised during the proceedings.
The submissions were made during the hearing of a petition filed by Bharat Petroleum Corporation Ltd (BPCL), which has challenged a Karnataka High Court order relating to ethanol allocation for the 2025-26 ethanol supply year.
The dispute stems from a June 23 order of the Karnataka High Court directing oil marketing companies (OMCs), including BPCL, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), to consider a representation from a distillery seeking enhanced ethanol allocation before the tender process was completed.
A vacation bench of the Supreme Court had earlier directed that the existing ethanol supply allocation for the 2025-26 supply year be maintained until further orders. The bench passed the interim direction after hearing Attorney General R. Venkataramani, who appeared for BPCL, and also issued notices to 24 respondents, including the Union government and 23 distilleries.
The status quo order effectively puts on hold any changes to ethanol allocation while the apex court examines the legal challenge.
During Tuesday's hearing, the Attorney General argued that implementing the Karnataka High Court's directions could destabilise the Centre's ethanol blending policy by altering the established allocation framework.
He submitted that ethanol supply contracts for the 2025-26 supply year had already been finalised in October 2025 and that modifying allocations for individual distilleries at this stage could disrupt procurement by oil marketing companies.
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The Attorney General also informed the bench that several petitions involving similar issues are pending before different High Courts across the country and sought time to file appropriate transfer petitions before the Supreme Court.
Responding to concerns over the E20 programme, the Centre defended the ethanol blending policy as a strategic national initiative aimed at reducing India's dependence on imported crude oil, improving energy security and lowering carbon emissions.
The government also argued that the programme supports farmers by creating additional demand for agricultural feedstocks such as sugarcane and maize while helping India meet its environmental objectives.
During the proceedings, the Centre said the E20 programme remains under evaluation and that its outcomes would be better understood next year. It reiterated that there is no definitive evidence linking E20 fuel with vehicle damage.
India has accelerated ethanol blending over the past few years as part of its broader clean energy strategy. The government has advanced its target of achieving 20% ethanol blending in petrol and has encouraged investments in ethanol production capacity to support the programme.
The Supreme Court's interim order ensures that the existing ethanol allocation mechanism for the 2025-26 supply year remains in force until the matter is decided. The final outcome of the case could have significant implications for ethanol producers, oil marketing companies and the implementation of India's biofuel blending programme.
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