NEW DELHI: The Centre told the Supreme Court that India’s 20% ethanol blending (E20) programme in petrol is still being studied and its full impact is expected to become clear by next year, according to media reports.
The statement was made during a hearing on a petition filed by Bharat Petroleum Corporation Limited (BPCL) over ethanol allocation for the 2025-26 supply year.
According to media reports, the Centre said ethanol supply contracts for the current cycle were finalised in October 2025. It argued that changing the allocation for one supplier could affect the national E20 programme and lead to similar legal cases.
The government also told the court that the policy to blend 20% ethanol with petrol is expected to continue. However, the amount of ethanol supplied to companies may change depending on demand and other factors.
India achieved its target of 20% ethanol blending in petrol in 2025, five years ahead of schedule. The government has now set a target of increasing ethanol blending to 30% by 2030.
Last week, the Union Oil Ministry said the E20 programme is safe, consumer-friendly and economically beneficial. It also said ethanol blending helps reduce crude oil imports, improve energy security and lower carbon emissions, while rejecting claims that E20 petrol could affect vehicle insurance.
