Karnataka minister Rizwan Arshad has alleged that petrol marketed as E20 by major oil marketing companies (OMCs) contains ethanol well above the prescribed 20% blending limit, with laboratory tests of samples from 63 petrol pumps recording concentrations as high as 31.2%.
The Karnataka government has urged the Centre to take punitive action against the oil companies and establish a fund to reimburse motorists for alleged damage to their vehicles.
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Speaking to reporters in Bengaluru on Friday, Karnataka's Food, Civil Supplies and Consumer Affairs Minister Rizwan Arshad said the department had collected 63 petrol samples from across the state and subjected them to laboratory testing.
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The tests found ethanol concentrations of 31.2% in petrol supplied by Indian Oil Corporation Limited (IOCL), while Hindustan Petroleum Corporation Limited (HPCL) recorded a blend of 30.5%.
The findings also showed ethanol levels of 26.5% in BPCL fuel, 26.1% in samples from Nayara Energy and 25.5% in Shell petrol. The department said multiple samples collected across Karnataka, including Bengaluru, exceeded the mandated 20% blending threshold.
Arshad said the department initially sent the samples to the in-house laboratories of IOCL and BPCL. However, the reports did not disclose the ethanol content, despite it being one of the prescribed testing parameters.
Questioning the transparency of the testing process, he said the department subsequently approached laboratories accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and recognised under the International Organization for Standardization (ISO).
"The reports have revealed higher ethanol blends," Arshad said, adding that the findings raised concerns about the quality of fuel being supplied to consumers.
The minister also questioned whether vehicles currently operating on Indian roads were equipped to handle petrol containing ethanol beyond the E20 threshold.
He argued that nearly 99% of India's vehicle population, estimated at more than 35 crore, was not designed to operate on ethanol blends exceeding 20%.
Even vehicles manufactured to comply with E20 specifications could face problems if the actual ethanol concentration in petrol exceeded the prescribed limit, he claimed.
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"If we are only beginning to manufacture E20-compliant vehicles after 2023, what proportion of the total vehicle population does this represent? It is a very small fraction. If the ethanol blend exceeds E20, even these vehicles will face problems," he said.
Citing the Automotive Research Association of India (ARAI), Arshad warned that excessive ethanol blending could affect fuel-system components, including rubber parts, hoses, gaskets, seals and O-rings, potentially accelerating their deterioration.
He estimated that consumers were collectively incurring a hidden annual loss of around Rs 62,000 crore due to reduced fuel efficiency. His calculation assumes a 10% decline in mileage, petrol priced at Rs 100 per litre and annual national fuel consumption of 6,200 crore litres.
Including potential vehicle damage and repair expenses, he put the overall economic burden on consumers at approximately Rs 1 lakh crore annually.
Arshad said the withdrawal of lower-ethanol petrol from nearly one lakh fuel stations had left consumers with little choice over the type of fuel they could purchase.
Karnataka's Four Demands To The Centre
The minister outlined four demands before the Centre:
Penal action against oil marketing companies found supplying petrol with ethanol content exceeding 20%.
Creation of an "E20 spoilage fund" to compensate vehicle owners for damage attributed to excessive ethanol blending.
A time-bound compensation mechanism under which claims would be assessed and damage certified by authorised vehicle service centres.
A nationwide mandate requiring petrol pumps to prominently display the ethanol percentage in the fuel being sold, allowing consumers to make informed choices.
Arshad also sought a public clarification from the Union government on the actual ethanol blending levels in petrol supplied across the country.
"The Union Government, OMCs and vehicle manufacturers are making windfall profits at the cost of consumers," he alleged.
He said Karnataka would forward the laboratory findings to the Centre, continue collecting and testing petrol samples and make subsequent findings public.
What Is The Centre's Position On E20 Petrol?
The Centre's ethanol blending programme is aimed at reducing India's dependence on imported crude oil, lowering the country's fuel import bill and creating additional demand for domestically produced ethanol, particularly from sugarcane and maize.
However, the expansion of E20 petrol has triggered concerns over vehicle compatibility, fuel efficiency and possible maintenance costs, particularly for older vehicles not designed for higher ethanol concentrations.
Leader of the Opposition in the Lok Sabha Rahul Gandhi has also criticised the Centre over the programme. The government, however, has defended ethanol blending, arguing that it supports farmers, reduces crude oil imports and strengthens energy security.
Road Transport Minister Nitin Gadkari has described the opposition to the programme as a "paid campaign", while Petroleum Minister Hardeep Singh Puri has rejected claims of vehicle-related problems as misleading.
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