Ministry of Petroleum Defends E20 Petrol Quality Amid Dispute with Karnataka

The government has defended the 20 per cent ethanol-blended petrol (E20) programme following tests of 893 samples collected across 27 states and Union Territories. According to the Ministry of Petroleum and Natural Gas, the samples—including 56 collected in Karnataka—were found to be compliant with prescribed quality standards.

State-run oil companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL), stated that all tested samples contained ethanol within the 19 to 21 per cent range specified under the Bureau of Indian Standards' IS 17021 framework. The 56 samples from Karnataka reportedly recorded ethanol levels between 19 and 20 per cent, with an average of 19.30 per cent.

These findings contrast with a recent press release by Karnataka's Department of Food, Civil Supplies, Consumer Affairs and Legal Metrology, which alleged that petrol samples from certain retail outlets in the state contained between 26 and 31 per cent ethanol.

The three public sector oil marketing companies (OMCs) have questioned the sampling and testing procedures used in Karnataka's October 2026 exercise. They argued that results cannot be validated without adherence to statutory procedures, such as the Motor Spirit and High Speed Diesel Order, 2005, and the Marketing Discipline Guidelines 2024, which require six one-litre samples to be drawn during inspections and shared with dealers and testing laboratories.

Furthermore, the OMCs questioned third-party laboratory certificates for failing to specify standard test methods, dilution procedures, or reference materials used for Gas Chromatography. They also noted that density readings in the samples reported by the state did not align with expectations for higher ethanol concentrations.

The government and OMCs also addressed estimates suggesting that E20 fuel could cause annual consumer mileage losses of around Rs 62,000 crore and vehicle repair costs of Rs 39,000 crore. Citing studies from the Inter-Ministerial Committee, Indian Oil, the Automotive Research Association of India (ARAI), and the Society of Indian Automobile Manufacturers (SIAM), the ministry noted that mileage impacts vary by vehicle category, typically ranging from 1 to 2 per cent for E20-calibrated vehicles and 3 to 6 per cent for certain others.

Data from the Petroleum Ministry indicates that since the 2014-15 ethanol supply year, the blending programme has generated foreign exchange savings of over Rs 1.97 lakh crore, substituted approximately 316 lakh metric tonnes of crude oil, reduced carbon dioxide emissions by about 952 lakh metric tonnes, and distributed more than Rs 1.66 lakh crore to farmers.

During the 2025-26 supply year ending October 31, 2026, the three OMCs procured 1,089 crore litres of ethanol and blended 1,134 crore litres against petrol sales of roughly 5,673 crore litres. The companies maintained they have no commercial incentive to exceed prescribed blending limits.

The OMCs have requested complete sampling documentation, outlet-wise laboratory reports, and access to counterpart samples from Karnataka authorities to conduct independent testing at an authorised laboratory.

"The ongoing discussion around the E20 fuel programme highlights the critical importance of standardized testing protocols and transparent supply chain reporting in large-scale national initiatives. For businesses and industries reliant on public sector infrastructure, adhering strictly to statutory guidelines helps maintain consumer confidence and ensures operational credibility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes