E20 still at experimental stage; results by 2027. Centre denies any such submission before Supreme Court

The Indian government informed the Supreme Court on Tuesday that the 20% ethanol blending programme in petrol, popularly known as E20, is still an ongoing experiment and the impact of the policy would be clearer by 2027, reported PTI.

The apex court of the country was hearing a plea filed by the state-run oil marketing company Bharat Petroleum Corporation Ltd. (BPCL), challenging an order of the Karnataka High Court, which directed oil marketing companies (OMCs) to revisit the distribution and enhancement of ethanol allocation for 2025-26.

The case

The OMC's plea claimed that the Karnataka High Court's order would destabilise the national policy of 20% ethanol blending for petrol. The news agency also reported that the Supreme Court on Tuesday ordered status quo on the Karnataka High Court's direction to enhance ethanol allocation for Ethanol Supply Year (ESY) 2025-26.

The Karnataka HC had directed the BPCL, Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation Limited (IOCL) to consider and decide a representation submitted by a dedicated ethanol manufacturer seeking enhancement of ethanol allocation for ESY 2025-26. The high court had held that dedicated ethanol plants, which were established pursuant to government policy and are contractually bound to supply ethanol exclusively to OMCs, cannot be denied the benefit of preferential allocation contemplated under the Long-Term Offtake Agreement (LTOA).

Attorney General R Venkataramani reportedly submitted that HC's order directing OMCs to consider enhancement of ethanol allocation to VINP Distilleries and Sugars would destabilise the national policy. Venkataramani pointed out that the ethanol supply contracts were concluded in October 2025. He said the ethanol allocation exercise attained finality on October 17, 2025, and allocations were communicated to 378 suppliers for a total supply of 1,050 crore litres of ethanol, of which 680 crore litres had already been supplied by them by June 18. If one supplier's quota were enhanced, other similarly placed suppliers would claim parity, which would open litigation floodgates, he said.

The great confusion

The central government later on Tuesday rejected media reports claiming it had described its 20% ethanol blended petrol or E20 programme as an "ongoing experiment" before the Supreme Court, asserting that such reports were "completely false" and did not reflect the submissions made by Attorney General R Venkataramani during the hearing of the case concerning ethanol allocation.

The Union Ministry of Law and Justice has issued a statement, saying that the reports suggesting that it had informed the apex court that the E20 programme was "still an ongoing experiment" and that "the impact of the policy would become clearer by next year" were inaccurate. "At no stage was any submission made that the Government's Ethanol Blended Petrol (EBP) Programme or the E20 blending programme is an 'experiment'. The ministry also said that it is clarified in explicit terms that any suggestion that the Government described the E20 programme before the Hon'ble Supreme Court as an 'experiment' is incorrect and does not represent the submissions made on behalf of the Union of India.

According to a clarification issued by the Office of the Attorney General for India, certain media reports published on June 30 had incorrectly represented the submissions made before the Supreme Court in proceedings arising out of a Special Leave Petition (SLP) filed by BPCL in an ethanol allocation dispute. The release said the reports "are completely false and do not reflect anything even close to the actual submissions made before the Hon'ble Court."

This created quite a confusion as PTI had earlier reported that the top law officer submitted that the 20% ethanol blending programme in petrol is still an ongoing experiment, and the impact of the policy would become clearer by next year.

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