New Delhi:
The Centre on Tuesday told the Supreme Court that its 20% ethanol blending programme in petrol is still an “ongoing experiment” and that the full impact of the policy is expected to become clear only next year.
Attorney General R Venkataramani, appearing for the Centre and Bharat Petroleum Corporation Limited (BPCL), said this during a hearing on a dispute over ethanol supply allocation for 2025-26.
His remarks come amid an ongoing debate over the ethanol blending programme, with critics raising concerns that higher ethanol content could affect older vehicles and reduce fuel efficiency. The government, however, has consistently defended the initiative, saying it is aimed at improving energy security, reducing dependence on imported crude oil, cutting emissions and boosting farmers’ incomes.
The Supreme Court directed that the status quo be maintained on supply allocation for the ethanol supply year 2025-26 while hearing BPCL’s appeal against a Karnataka High Court order.
A vacation bench also issued notices to the Union government and 23 distilleries on BPCL’s appeal challenging the high court’s directions.
The Attorney General argued that the Karnataka High Court’s order, which directed Oil Marketing Companies (OMCs) to consider representations from distilleries seeking enhanced ethanol allocation for 2025-26, could disrupt the Centre’s nationwide ethanol blending policy.
Responding to the bench’s query on why the high court’s division bench had not been approached, the Attorney General said ethanol supply contracts had already been finalised in October 2025 and that similar petitions were pending before various high courts.
He also informed the court that the Centre would be filing appropriate transfer petitions to ensure uniform adjudication of the issue.
