The Supreme Court directed that status quo be maintained in a case concerning the increased allocation of ethanol supplies to oil marketing companies, following an order by the Karnataka High Court.
A bench comprising Justices MM Sundresh and Sheel Nagu, while hearing a petition filed by Bharat Petroleum Corporation Ltd (BPCL), ordered a status quo in the matter.
The BPCL had challenged the High Court’s earlier directive requiring oil marketing companies to increase ethanol allocation for the 2025–26 period.
Appearing for BPCL, Attorney General R. Venkataramani argued that implementing the High Court’s order could disrupt the Centre’s national policy aimed at achieving 20 percent ethanol blending with petrol. Under India’s E20 fuel programme, petrol is blended with 20 percent ethanol as part of the government’s ethanol blending initiative.
What Centre tells Supreme Court
Attorney General R Venkataramani, representing the government, told the Supreme Court that the ethanol blending programme is an ongoing experiment and the impact of the policy would be clearer by next year, according to India Today.
Venkataramani informed the court that the ethanol supply contracts were concluded in October 2025.
He said the ethanol allocation process was completed on October 17, 2025, following which allocations were communicated to 378 suppliers for a total supply of 1,050 crore litres of ethanol. Of this, 680 crore litres had already been supplied by them as of June 18.
While Venkataramani described the rollout of E20 fuel as being implemented on an experimental basis, there are no government records specifying a timeline for the programme. At the same time, the government has proposed increasing ethanol blending beyond the current level.
The ethanol blending programme has remained a subject of debate in the country, with concerns being raised over potential damage to older vehicles and reduced fuel efficiency. The government, however, has dismissed these concerns, stating that there is no evidence linking ethanol-blended petrol to mechanical damage.
The hearing took place amid an ongoing debate over the ethanol blending programme, with the government consistently maintaining that the initiative benefits the country’s energy security, supports farmers, and promotes environmental sustainability.
