AG Tells SC E20 Rollout Is an ‘Experiment’; Results Expected Next Year: PTI Report

The Union government on Tuesday told the Supreme Court that the nationwide rollout of E20 petrol is still being assessed, with the outcomes expected to become clearer by next year, even as the Court ordered status quo on a Karnataka High Court direction relating to ethanol allocation.

Appearing for the Centre, Attorney General R. Venkataramani told the Bench that 20% ethanol blending was “something that the government is experimenting with” and that “by next year we will have results.” PTI reported that the submission came during the hearing of Bharat Petroleum Corporation Ltd.’s appeal against a Karnataka High Court order directing oil marketing companies to revisit ethanol allocations for the current Ethanol Supply Year.

The Attorney General’s oral submission was also accompanied by the Centre’s affidavit before the Supreme Court, in which the government said the impact of the E20 programme would become clearer after a longer period of implementation. The affidavit stated that meaningful conclusions would be possible once sufficient operational experience had been gathered from vehicles running on E20 fuel.

Senior Advocate Mukul Rohatgi, appearing for BPCL, argued that reopening ethanol allocations after they had already been finalised and implemented would disrupt the national E20 blending programme. He submitted that revisiting allocations at this stage could affect the procurement process and create uncertainty for oil marketing companies and ethanol suppliers.

A bench of Justices M.M. Sundresh and Sheel Nagu issued notice in the matter and directed that status quo be maintained until the next hearing, allowing the existing allocation process to continue for the time being.

The Supreme Court’s interim order does not decide the merits of the Karnataka High Court judgment. It only keeps the existing ethanol allocation process unchanged while the appeal is heard.

The Attorney General’s remarks on E20 were made during the course of the hearing and do not constitute a finding of the Supreme Court. The Court did not express any view on the merits of the government’s ethanol blending policy or the E20 rollout.
The Karnataka High Court had earlier directed oil marketing companies to reconsider ethanol allocation after holding that commitments made under Long-Term Offtake Agreements with dedicated ethanol plants warranted fresh consideration. BPCL challenged that direction before the Supreme Court, contending that reopening allocations after implementation could have wider implications for the Centre’s ethanol blending programme.

India has progressively expanded E20 petrol availability as part of its strategy to reduce crude oil imports, improve energy security and increase the use of domestically produced biofuels. Most new petrol passenger vehicles introduced in recent years have been made E20 material-compatible, while the government has also been encouraging the development of flex-fuel vehicles as part of its broader biofuels roadmap.

The case is likely to be closely watched by automakers, oil marketing companies, ethanol producers and fuel suppliers, as it touches both the implementation of the E20 programme and the contractual framework governing ethanol procurement. For now, however, the Supreme Court’s status quo order means the existing allocation process will continue until further directions from the Court.