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The Centre on Tuesday told the Supreme Court that India's 20 per cent ethanol blending programme in petrol remains an ongoing experiment, with the full impact of the policy expected to become clearer by next year. The submission comes as the government continues to defend the initiative, describing it as a key measure to strengthen energy security, support farmers and reduce emissions.

Attorney General R Venkataramani made the remarks while arguing a petition filed by Bharat Petroleum Corporation Limited (BPCL), which has challenged a Karnataka High Court order concerning ethanol allocation for the 2025-26 supply year. BPCL has argued that the order could hamper the government's wider objective of maintaining 20 per cent ethanol blending in petrol, reported India Today. 

Addressing the court, Venkataramani said the programme was still under evaluation. "Twenty per cent ethanol blending is something that the government is experimenting with. By next year we will have results," he told the Supreme Court.

Supreme Court Questions BPCL's Legal Approach

During the hearing, the Supreme Court questioned why BPCL had not first approached the division bench of the Karnataka High Court to challenge the order.

Responding to the court's query, the Attorney General said ethanol supply contracts for the current cycle had already been finalised in October 2025 and pointed out that similar disputes were pending before multiple high courts. He argued that the matter had wider implications because it could affect the country's ethanol blending policy.

Venkataramani also sought permission to file a transfer petition before the Supreme Court. He said a consolidated hearing was necessary because ethanol supply contracts would be due for renewal in October, and pursuing separate proceedings in different high courts could delay a final decision.

Attorney General Says Policy Will Continue

Following the hearing, Venkataramani clarified that his remarks should not be interpreted as a shift in the government's ethanol blending policy.

He told India Today that the decision to implement 20 per cent ethanol blending remains unchanged. However, he noted that the quantity of ethanol supplied to oil marketing companies could vary depending on demand and other operational factors.

His clarification came after courtroom observations drew attention to the government's description of the programme as an ongoing experiment, even as the national rollout has already been completed.

India Achieved E20 Target Ahead Of Schedule

India achieved its target of blending 20 per cent ethanol with petrol last year, reaching the milestone five years ahead of its original schedule. Oil marketing companies have been supplying ethanol-blended petrol across the country since April 1.

The government has now set a more ambitious target of raising ethanol blending to 30 per cent by 2030 as part of its long-term energy transition strategy.

The ethanol blending programme has been positioned as a key initiative to reduce dependence on imported crude oil while supporting cleaner transport and domestic biofuel production.

Centre Recently Rejected Concerns Over E20 Fuel

Tuesday's hearing came less than a week after the Union Oil Ministry reaffirmed that the ethanol blending programme is safe, consumer-friendly and economically beneficial. The ministry rejected claims that using E20 fuel could affect vehicle insurance coverage.

In a statement issued on June 24, the ministry said concerns about E20 fuel invalidating insurance policies had been examined in consultation with stakeholders and were found to be incorrect.

The ministry also noted that ethanol blending is already widely adopted in countries including the United States, Brazil and Japan. It said the programme has helped India save more than Rs 1.4 lakh crore in foreign exchange by lowering crude oil imports.

Reiterating its commitment to the initiative, the ministry said ethanol blending contributes to India's energy security, reduces carbon emissions and supports the country's transition to cleaner mobility. It added that the programme would continue to be implemented in a safe, transparent and consumer-centric manner based on scientific evidence and consultations with stakeholders.