During the hearing, Attorney General R. Venkataramani told the Supreme Court that there is no hard scientific evidence establishing a direct link between E20 petrol and mechanical damage to vehicles. He said the government's ethanol blending programme serves India's long-term energy security objectives, benefits farmers, and contributes to environmental protection.
BPCL argued before the Supreme Court that the Karnataka High Court's order could adversely affect the Central Government's broader policy objective of achieving and sustaining 20 per cent ethanol blending in petrol across the country.
Addressing the court, the Attorney General said the government is continuing its assessment of the E20 programme. "Twenty per cent ethanol blending is something that the government is experimenting with. By next year we will have results," he submitted during the proceedings.
The Supreme Court questioned why BPCL had not first approached the Division Bench of the Karnataka High Court against the impugned order. Responding to the court's observation, Venkataramani said ethanol supply contracts had already been finalised in October 2025 and that similar petitions involving the same issue were pending before multiple High Courts across the country.
He argued that separate proceedings before different courts would delay the matter and could significantly impact the implementation of the national ethanol blending policy. Seeking permission to file a transfer petition before the Supreme Court, the Attorney General said the issue required an authoritative decision before October, when ethanol supply contracts are scheduled to come up for renewal.
"If I go before the Division Bench and then again to other High Courts, it will be delayed," he told the court, stressing that the dispute has nationwide policy implications.
Shortly after the hearing, the Attorney General clarified to India Today that the government's policy of maintaining a 20 per cent ethanol blend in petrol remains unchanged.
"The 20 per cent mix of ethanol is a policy decision that is not likely to change. How much ethanol is made available to companies may go up or down depending on demand and other factors," he said.
India achieved its target of blending 20 per cent ethanol with petrol last year, five years ahead of the original schedule. Oil marketing companies began supplying ethanol-blended petrol across the country from April 1, marking a major milestone in the government's clean energy programme.
The Central Government has now set a more ambitious target of increasing ethanol blending in petrol to 30 per cent by 2030 as part of its broader energy transition strategy.
The Supreme Court hearing came less than a week after the Union Ministry of Petroleum and Natural Gas rejected concerns that the use of E20 fuel could affect vehicle insurance coverage. In a statement issued on June 24, the ministry said claims suggesting that E20 petrol could invalidate insurance policies had been examined in consultation with stakeholders and were found to be incorrect.
The ministry stated that ethanol blending is a globally accepted practice that has been successfully implemented in countries including the United States, Brazil, and Japan. It also highlighted that the programme has enabled India to save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports.
According to the ministry, ethanol blending plays a significant role in strengthening India's energy security, lowering carbon emissions, and supporting the country's transition towards cleaner mobility. Reiterating its commitment to the programme, the government said the ethanol blending initiative would continue to be implemented in a safe, transparent, consumer-centric manner based on scientific evidence and consultations with stakeholders.
The proceedings before the Supreme Court assume considerable importance as the outcome could influence the future implementation of India's ethanol blending programme, the renewal of ethanol supply contracts, and the legal framework governing one of the country's most significant energy policy initiatives.
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