New Delhi: Oil marketing companies (OMCs) breathed a sigh of relief on Tuesday after the Supreme Court ordered status quo on ethanol allocation for the Ethanol Supply Year (ESY) 2025-26.
A bench of Justice MM Sundresh and Justice Sheel Nagu was hearing a plea filed by state-owned Bharat Petroleum Corporation Limited (BPCL) challenging a Karnataka High Court order directing OMCs to revisit the distribution of ethanol for 2025-26.
The top court’s order was a shot in the arm for the Central government’s E20 fuel programme — 20% ethanol blending in petrol, which has evoked concerns among vehicle owners across the country.
Attorney General R Venkataramani, representing the government-owned BPCL, told the Supreme Court that the country’s E20 programme is an ongoing experiment, and the full impact of the policy is expected to be clearer by next year.
Venkataramani argued that the Karnataka HC’s order would affect the policy for 20 per cent ethanol-petrol blending as ethanol supply contracts were already been finalised.
“The ethanol supply contracts had already been finalised in October 2025. Such petitions are pending before several high courts. This will impact the national policy,” the Attorney General said.
“The government is trying to experiment with 20% ethanol blending. We will have results of that by next year,” he added.
He further argued that granting changes to one supplier’s allocation could prompt similar claims from others, leading to complications.
In its order on June 23, Karnataka HC directed OMCs — BPCL, Hindustan Petroleum Corporation Limited and Indian Oil Corporation — to consider a request by a distillery seeking an increase in ethanol allocation before the tender process was finalised.
After hearing arguments from both parties, the top court agreed to hear the case while ordering status quo.
Notices were issued to 24 respondents – the Union of India and 23 distilleries – on BPCL’s appeal challenging the high court’s order.
Last week, the government dismissed concerns over the ethanol blending programme, and assured that it remains safe, consumer-friendly and economically beneficial.
