Supreme Court was told today that 20 per cent ethanol blending initiative is still under the experiment stage.

The Supreme Court has directed a status quo on the ethanol supply allocation for the Ethanol Supply Year (ESY) 2025–26.

Attorney General R Venkataramani, on behalf of the Centre told Supreme Court today that the 20 per cent ethanol blending initiative in petrol is still under the experiment stage, adding that the full impact of the policy is expected to be clearer by next year.

A bench of Justice MM Sundresh and Justice Sheel Nagu heard arguments from Attorney General R Venkataramani and Senior Advocate Siddharth Dave. The parties are before Supreme Court against a Karnataka High Court order which had directed further enhancement of ethanol allocation. In its June 23 order, the High Court directed Oil Marketing Companies — BPCL, HPCL and IOC — to examine and decide a distillery's plea seeking higher ethanol allocation before finalising the tender process.

Venkataramani told court today that the High Court's order would affect the policy for 20 per cent ethanol-petrol blending. The bench has now issued notice to the Union of India and 23 distilleries – on BPCL’s appeal challenging the high court's order.

Justice Sundresh further asked why the matter could not be taken up before the High Court's Division Bench, the Attorney General said ethanol supply contracts had already been finalised in October 2025 and that multiple petitions on the issue were pending before various high courts. 

Last year, the Supreme Court had refused to entertain a PIL filed against the 'forced and unregulated' implementation of Ethanol Blended Petrol (EBP) across the country. Attorney General R Venkataramani had told court that the petitioner before it was just a name lender and there was a lobby behind the plea. "There is no mindless application..everything has been considered by the government..this benefits sugarcane manufacturers..", AG had told the court.

The PIL sought an interim relief has also been sought to ensure that petrol as compatible for majority of the vehicular fleet in India is made available. A direction to mandatorily label ethanol content on all petrol pumps and dispensing units, clearly visible to consumers has also been sought. Consumers are also to be informed about ethanol compatibility of their vehicles at the time of fuel dispensing.

The Government of India has notified an Ethanol Blended Petrol Program for Ethanol blended fuel to the extent of 20% blending (20% ethanol + 80% petrol). Supreme Court was told that vehicles which were manufactured in India prior to April 2023 are not compatible with ethanol mix petrol and further the vehicles as recent as 2 years old, though BS-VI compliant, are also not compatible with ethanol mixed petrol wherein the percentage of ethanol is twenty percent.

Just last week, Centre dismissed concerns being raised that India's ethanol blending program -- E20 fuel -- could affect the validity of vehicle insurance policies, and assured that it remains safe, consumer-friendly, and economically beneficial. The Press Information Bureau (PIB) in a release said that the government had noted certain misleading and unsubstantiated claims being circulated on social media regarding Ethanol Blended Petrol (EBP), which appear to be aimed at confusing and misleading the public. "Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan," it added.

Case Title: BHARAT PETROLEUM CORPORATION LTD. Vs UNION OF INDIA

Bench: Justices MM Sundresh and Sheel Nagu

Hearing Date: June 30, 2026

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