Karnataka Alleges Oil Marketing Companies Supplied Petrol With Over-Blended Ethanol Levels Exceeding 20 Percent Limit

The Karnataka government on Friday alleged that major oil marketing companies (OMCs) were supplying petrol with ethanol content exceeding the prescribed 20 per cent limit. Tests conducted on fuel samples recorded levels as high as 31.2 per cent, prompting the state to seek formal action against the companies.

Food, Civil Supplies, Consumer Affairs and Legal Metrology Minister Rizwan Arshad released the allegations based on tests carried out on petrol samples collected from Bengaluru, Kolar, Chikkaballapura, Bengaluru Rural, Ramanagara, Mangaluru, and Tumakuru. The testing was performed by the National Accreditation Board for Testing and Calibration Laboratories-accredited and ISO-certified Shriram Research Institute in Bengaluru.

According to the test results, samples from Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) recorded ethanol content of 31.2 per cent and 30.5 per cent, respectively. Additional results indicated ethanol levels of 27 per cent in HPCL (MS) petrol, 26.5 per cent in Bharat Petroleum Corporation Limited's (BPCL) Speed petrol, 26.1 per cent in Nayara petrol, and 25.5 per cent in Shell petrol. Other samples showed readings ranging between 13.5 per cent and 24.2 per cent across various OMCs, including the Mangalore Refinery and Petrochemicals Limited (MRPL).

The state government alleged that initial samples submitted to the in-house laboratories of IOCL and BPCL failed to disclose the ethanol content in their test reports, despite it being a prescribed testing parameter. The release stated that this omission raised questions about the transparency of OMCs and what they seek to conceal from consumers.

Highlighting the impact on consumers, the Karnataka government stated that buyers were bearing a financial burden due to reduced vehicle mileage and potential damage to components such as filters, fuel pumps, injectors, hoses, and seals. It claimed that 99 per cent of India's 35 crore vehicles are not designed to run on ethanol blends exceeding E20, and that even vehicles sold after April 2023 are certified only for blends of up to 20 per cent. Furthermore, the government noted that most dispensing units currently in use at petrol pumps are designed to handle blends containing up to 15 per cent biodiesel or ethanol.

In response to the findings, the state government demanded action against OMCs supplying petrol with more than 20 per cent ethanol, compensation for consumers with damaged vehicles, mandatory nationwide display of ethanol blend percentages at fuel stations, and the provision of different fuel blends to offer consumer choice. It also called for an E20 spoilage fund to compensate affected buyers through a time-bound claims process certified by authorized service centres.

Arshad stated that the Union Ministers of Road Transport and Highways and Petroleum and Natural Gas owed an explanation to the public, adding that arguments regarding foreign exchange savings had not translated into tangible benefits for consumers. The government stated it had empowered officials under the Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 2005, to act against distribution malpractices under Mission Nikhara, and vowed to continue testing fuel across the state.

"This development highlights the critical importance of supply chain transparency and regulatory compliance in heavy industries like fuel distribution. For businesses and startups operating in manufacturing and supply chain sectors, maintaining strict adherence to quality parameters is essential to protect end-consumers and avoid severe regulatory liabilities. When infrastructure and consumer hardware are not aligned with raw material inputs, it creates widespread operational and financial friction across the market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes