Supreme Court upholds E20 petrol rollout, affirming government’s push for ethanol blending amid consumer and industry concerns.
01 Sep 2025 | 3732 Views | By Shahkar Abidi
India's Supreme Court today dismissed a public interest litigation challenging the nationwide rollout of 20% ethanol-blended petrol, dealing a decisive blow to critics who argued that millions of motorists were being forced to use fuel incompatible with their vehicles. The ruling by Chief Justice B.R. Gavai and Justice K. Vinod ...
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India's Supreme Court today dismissed a public interest litigation challenging the nationwide rollout of 20% ethanol-blended petrol, dealing a decisive blow to critics who argued that millions of motorists were being forced to use fuel incompatible with their vehicles. The ruling by Chief Justice B.R. Gavai and Justice K. Vinod Chandran effectively validates the government's ambitious ethanol blending programme amid fierce debate over vehicle compatibility and consumer choice.
The PIL, filed by advocate Akshay Malhotra, sought to compel the Ministry of Petroleum and Natural Gas to ensure ethanol-free petrol remained available at fuel stations across India. Senior Counsel Shadan Farasat, representing the petitioner, argued that consumers lacked choice and that many vehicles, particularly those manufactured before April 2023, were not designed for high ethanol blends, risking engine damage and reduced mileage.
"E20 is a logical progression, but cars need to be made compatible along with engine calibration. Non-availability of E10 petrol for existing customers is what we are challenging. We want options. We do not want E20 to go," Farasat said, as per a report by legal news website Bar and Bench. “In India, without informing the consumers, only ethanol-blended petrol is made available to the public without any labelling or display of composition of the fuel,” the petitioner alleged.
The petition demanded mandatory labelling of ethanol content at fuel pumps, consumer awareness campaigns, and a nationwide study on the impact of E20 on non-compliant vehicles. It highlighted that in the United States and European Union, ethanol-free petrol remains widely available with clear labelling, allowing informed consumer choice.
Attorney General R. Venkataramani mounted a robust defence, suggesting vested interests were behind the challenge. He stated that the petitioner is a name lender. "Somebody from outside will dictate what petrol to use," he told the court, adding that the programme benefits sugarcane farmers and India's energy security. The government argued that consumers could not dictate fuel composition and emphasised the policy's alignment with national energy goals.
India's Ethanol Gamble: A Fuel-Blended Quandary
India is charging ahead with an ambitious ethanol blending programme, aiming for a 20 percent ethanol-petrol mix (E20) by 2025–26, a target advanced significantly from its original 2030 deadline. This rapid rollout, however, has ignited a fierce debate, pitting the government's strategic objectives against mounting consumer and industry anxieties.
The government champions ethanol blending as a dual panacea: a critical step to slash India's colossal crude oil import bill, which exceeds $130 billion (over Rs 1.1 lakh crore) every year, thereby bolstering energy security against geopolitical uncertainties. Official figures claim over Rs 24,300 crore of savings in foreign exchange in the ethanol supply year 2022–23. Beyond economics, ethanol, derived from crops, is touted as a cleaner-burning, low-carbon fuel that supports the rural economy.
Yet, the speed of E20 adoption and the lack of choice of lower ethanol blends like E10 have triggered an uproar. Motorists, especially those with older vehicles not explicitly designed for E20, voice fears of a drastic reduction in mileage and long-term corrosion of mechanical components. Anecdotal reports suggest efficiency losses of 15–20 percent, although official Automotive Research Association of India (ARAI) tests indicate a smaller dip of 1–6 percent, varying by vehicle.
Facing mounting criticism, the automotive sector organised a joint press conference featuring SIAM, ARAI, and petroleum industry representatives to address concerns. They dismissed consumer complaints as "misinformation and misunderstanding," claiming that mileage drops could also result from poor maintenance, bad driving habits, or vehicle age.
What Next?
With the Supreme Court dismissing the PIL, critics face limited legal recourse. The court's decision validates the government's position that ethanol blending serves national interests in energy security, environmental protection, and agricultural support. The ruling effectively endorses the phase-out of ethanol-free fuel options.
For vehicle owners concerned about compatibility, manufacturers have committed to honouring warranties and insurance claims. However, the lack of alternative fuel options means consumers will have to learn to live with it or, if possible, choose premium petrol variants like XP95 (from Indian Oil) or Power 95 (from Hindustan Petroleum), which are touted to generally contain lower ethanol content compared to regular E20 petrol, though the exact blend can vary by provider and location.