- The Supreme Court ordered to maintain current ethanol supply allocation for 2025-26 year
- The court issued notices to 24 parties including Union government and 23 distilleries
- BPCL challenged Karnataka High Court order directing OMCs to consider higher ethanol allocation
The Supreme Court on Monday directed that the existing ethanol supply allocation for the 2025-26 ethanol supply year be maintained while hearing an appeal filed by Bharat Petroleum Corporation Ltd (BPCL) against a Karnataka High Court order that had directed oil marketing companies (OMCs) to consider enhancing allocation for certain distilleries.
A vacation bench of the apex court passed the interim order after hearing Attorney General R. Venkataramani, who appeared on behalf of BPCL, reported NDTV. The court also issued notices to 24 respondents, including the Union government and 23 distilleries, on the public sector oil marketer's appeal.
With the order, the Supreme Court has directed status quo on ethanol supply allocation for the 2025-26 supply year until further proceedings in the case.
The appeal challenges a recent Karnataka High Court order that directed various oil marketing companies to consider and decide representations submitted by distilleries seeking enhanced ethanol allocation for the 2025-26 supply year.
The Attorney General argued before the Supreme Court that implementing the High Court's directions could have wider implications for the Centre's ethanol procurement framework and disrupt the national ethanol blending policy.
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According to the submissions, any increase in allocation to individual distilleries could alter the allocation mechanism adopted by oil marketing companies for the ongoing supply year.
During the hearing, the Attorney General contended that the High Court's order could destabilise the government's policy aimed at achieving 20% ethanol blending with petrol.
When the bench asked why the matter had not been taken before a division bench of the Karnataka High Court, the Attorney General submitted that ethanol supply contracts for the 2025-26 supply year had already been finalised in October 2025.
He also informed the court that multiple petitions involving similar issues are pending before various High Courts across the country and sought time to file appropriate transfer petitions before the Supreme Court.
Accepting the request for interim relief, the Supreme Court directed that the current ethanol allocation framework remain unchanged pending further hearings.
The order provides continuity for oil marketing companies, which procure ethanol from distilleries under the Centre's ethanol blending programme. The programme is a key component of India's strategy to reduce dependence on imported crude oil, improve energy security and increase the share of biofuels in transportation fuels.
The matter will now proceed after the respondents, including the Union government and the 23 distilleries, file their responses to BPCL's appeal.
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