Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have disputed findings by the Karnataka government that petrol sold at certain retail outlets in the State contained between 26% and 31% ethanol, above the prescribed E20 blending level.
In a joint statement issued on November 6, 2026, the three public sector oil marketing companies (OMCs) said E20 petrol supplied through their nationwide retail networks, including Karnataka, conforms to IS 17021, the Bureau of Indian Standards (BIS) specification for ethanol-blended motor gasoline.
The OMCs have questioned the sampling and testing procedures followed during Karnataka's October 2026 inspection exercise, stating that the reported findings cannot be independently verified without the prescribed documentation, testing methodology and access to retained samples.
OMCs Question Karnataka's E20 Fuel Sampling and Testing Procedure
Under the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005, read with the Marketing Discipline Guidelines (MDG) 2024, fuel sampling must follow a defined procedure.
The procedure requires six one-litre samples to be collected, with two handed over to the dealer, two retained by the oil company or department, and two sent to a laboratory specified under the Control Order or notified in the Official Gazette. Sample labels must be jointly signed, and test results communicated to the dealer and oil company within the prescribed timeframe.
According to the OMCs, samples collected during Karnataka's September 2026 exercise were routed through the State Level Coordinator to designated OMC laboratories and tested against the quality parameters specified under MDG 2024.
However, the companies said the subsequent October exercise reportedly involved samples collected without the participation of OMC representatives. They also said they had not received the corresponding retention samples, outlet-wise details or laboratory reports, despite seeking the information through the State Level Coordinator.
The OMCs further questioned the use of third-party laboratory certificates, stating that these did not contain sufficient technical information to independently verify the reported ethanol content. The absence of counterpart samples, they said, had also prevented the companies and dealers from seeking verification or retesting.
OMCs Flag Testing Methodology Under IS 17021 Standards
The companies have also raised concerns about the testing methods cited in the Karnataka laboratory certificates.
Under IS 17021:2018, including Amendment No. 3 issued in August 2025, ethanol content in E20 fuel must be determined using specified methods. These include Fourier Transform Infrared Spectroscopy (FTIR) under ASTM D5845, water extraction under Annex C, or Gas Chromatography under ASTM D4815/D6839.
For Gas Chromatography testing under ASTM D4815/D6839, the sample must first be diluted in a 1:1 ratio with oxygenate-free petrol, with the result corrected against an E10 certified reference material.
The OMCs said the certificates cited in the Karnataka government's press release only mentioned ethanol percentage by Gas Chromatography, without specifying the applicable standard, dilution procedure or reference material used for correction. They argued that the reported ethanol levels of 26–31% therefore could not be independently validated against the prescribed methodology.
The companies also flagged differences in the reported fuel density readings. The Karnataka certificates indicated densities of 0.742–0.749 g/cc for samples reportedly containing 26–31% ethanol, compared with 0.752–0.760 g/cc recorded in the OMCs' QCC-1 and QCC-2 surveys of E20 samples.
The OMCs said the discrepancy warranted further investigation, given that ethanol has a higher density than petrol and a higher ethanol proportion would ordinarily be expected to increase the density of the blend.
893 E20 Samples Across 27 States Meet Prescribed Specifications: OMCs
The OMCs cited findings from the Oil Marketing Companies/Centre for High Technology (OMC/CHT) Quality Coordination Cell (QCC) exercise to support their position on fuel quality.
The exercise covered 893 E20 samples collected from IOCL, BPCL and HPCL depots and retail outlets across 27 States and Union Territories. The samples comprised 330 from IOCL, 280 from BPCL and 283 from HPCL.
Tested at refinery and OMC quality-control laboratories for ethanol content under IS 17021, Annex C, all 893 samples were found to contain between 19% and 21% ethanol, within the prescribed range.
In Karnataka, all 56 samples tested across different locations and outlets operated by the three OMCs were found to comply with the specifications. Ethanol content ranged between 19% and 20%, with an average of 19.30%.
The companies said these findings differed from the higher ethanol concentrations reported by the Karnataka government and called for a transparent testing exercise involving both the State government and the OMCs.
OMCs Cite Automated Ethanol Blending and Quality Controls
The three companies said ethanol blending at their refineries and depots is carried out through calibrated and automated systems, with automatic proportioning arrangements governing the blending process.
According to the OMCs, blending operations are subject to prescribed fuel specifications and quality-control protocols, rather than manual or arbitrary addition of ethanol. They said quality-assurance mechanisms are maintained across their supply and distribution networks to ensure compliance with BIS specifications before fuel reaches retail outlets.
OMCs Dispute ₹1.01 Lakh Crore Consumer Loss Estimates
The OMCs have also questioned estimates suggesting that ethanol blending could result in annual consumer mileage losses of approximately ₹62,000 crore and vehicle repair costs of ₹39,000 crore, taking the combined estimated impact to around ₹1.01 lakh crore.
The companies said more than 30 crore two-wheelers and 4 crore four-wheelers had been operating on E20 fuel for over three years. They also pointed to the absence of reported widespread vehicle breakdowns as a factor to be considered when assessing claims about fuel quality and vehicle performance.
The OMCs referred to studies conducted by the Inter-Ministerial Committee and research involving IOCL, the Automotive Research Association of India (ARAI) and the Society of Indian Automobile Manufacturers (SIAM).
According to the Ministry of Petroleum and Natural Gas' response, Response to Concerns on Blending of Ethanol in Petrol and Beyond, published by the Press Information Bureau on August 12, 2025, vehicles calibrated for E20 can experience mileage reductions of approximately 1–2%. For certain other vehicles, the reduction could be around 3–6%, depending on vehicle category and calibration.
The companies argued that applying a blanket assumption of 10% mileage loss across the entire vehicle population to calculate national consumer losses was not supported by established technical evidence.
They also said the estimated ₹39,000 crore in vehicle repair costs required substantiation through vehicle-performance data, materials compatibility studies and documented repair expenses. Any assessment, they added, should account for vehicle category, manufacturing specifications and fuel compatibility.
E20 Programme Records ₹1.97 Lakh Crore in Forex Savings Since FY2015
The OMCs also highlighted the broader economic and environmental outcomes of India's Ethanol Blended Petrol (EBP) Programme, which began with a pilot initiative in 2001 and subsequently expanded through policy measures, including the National Policy on Biofuels, 2018, and the NITI Aayog roadmap for ethanol blending.
According to the Ministry of Petroleum and Natural Gas' Ethanol Blended Petrol Programme – Frequently Asked Questions, published on July 10, 2026, the programme has delivered the following outcomes since Ethanol Supply Year (ESY) 2014-15:
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Foreign exchange savings of more than ₹1.97 lakh crore.
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Substitution of approximately 316 lakh metric tonnes of crude oil.
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Reduction of approximately 952 lakh metric tonnes of CO₂ emissions.
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Transfer of more than ₹1.66 lakh crore to farmers.
During ESY 2025-26, ending October 31, 2026, public sector OMCs procured 1,089 crore litres of ethanol and blended 1,134 crore litres against petrol sales of approximately 5,673 crore litres, as part of the national 20% blending target.
The companies also rejected the suggestion that they had a commercial incentive to exceed the prescribed blending proportion, stating that additional ethanol procurement would increase their costs.
OMCs Seek Independent Verification of Karnataka E20 Test Results
Following the disputed findings, IOCL, BPCL and HPCL have requested the Karnataka government to provide complete sampling documentation, outlet-wise laboratory reports and details of the testing methodology used during the October exercise.
They have also sought access to the counterpart samples for independent testing at an authorised laboratory using the prescribed referee method, with representatives of the State government and OMCs present.
The companies said they were willing to participate in joint sampling and testing in accordance with the Control Order and MDG 2024. Any deviation established through the prescribed procedure would be addressed under the applicable guidelines.