A crucial hearing was held in the Supreme Court on Tuesday on the process of blending 20 percent ethanol (E20) in petrol. The central government told the apex court that the scheme is still in pilot phase and its actual results will be more clear by next year. It is important for the government to make these comments in the context of concerns that old vehicles will be damaged and mileage reduced due to ethanol blending. However, the Center has clarified that there is no clear evidence that E20 fuel causes mechanical damage to vehicles. Moreover, this policy will increase the country’s energy security and will benefit the farmers and the environment, it said.
What is the real dispute in court?
Public sector firm ‘Bharat Petroleum Corporation Limited’ (BPCL) has approached the Supreme Court challenging an order passed by the Karnataka High Court on ethanol allocations for the supply year 2025-26. The Karnataka High Court on June 23 directed oil marketing companies (OMCs) to consider a distillery’s application to increase their ethanol quota before the end of the tender process. BPCL told the court that the order given by the High Court will have a severe impact on the ethanol blending targets across the country. Attorney General R. who appeared on behalf of the central government. Venkataramani said that the ethanol allocation process was completed by October 2025 and the supply agreements were also finalised. He warned that if allocations are changed for one company now, the other companies will also approach the courts, which will disrupt the supply chain across the country. He reminded that similar petitions are pending in many high courts.
Government’s strategy.. Huge offers
The Attorney General explained to the court that BPCL, which is coordinating the ethanol blending programme, has received offers for the supply of around 1,759 crore liters of ethanol through the tender process. He sought permission to file a transfer petition to bring all these disputes together and hear them in view of the renewal of these supply agreements in October. After the court hearing, the Attorney General clarified.. “It is a policy decision of the government to add 20 percent ethanol to petrol, there will be no change in this. Otherwise, there may be fluctuations in the quantity of ethanol available to companies based on demand and other factors.”
India achieved its 20 percent ethanol blending target five years ahead of schedule (last year). Oil marketing companies are supplying this fuel across the country from April 1. Meanwhile, the government aims to increase this blending percentage to 30 percent by 2030. The Union Oil Ministry recently clarified that the use of E20 fuel does not pose any threat to vehicle insurance claims. It said that there is no truth in the campaign that insurance policies will be cancelled. Ethanol blending is going on successfully in countries like America, Brazil and Japan, due to which crude oil imports are reduced and India is getting Rs. The Ministry revealed that more than 1.4 lakh crore foreign exchange has been saved. The government has reiterated that the program will be carried forward in an environment-friendly and consumer-safe manner.