Union Minister of New and Renewable Energy, Pralhad Joshi, has raised serious questions regarding the credibility of the Karnataka government's findings on the percentage of ethanol present in petrol. Joshi, who also serves as the Minister for Consumer Affairs, Food & Public Distribution, stated that the state government failed to follow requisite procedures for sampling and testing.
The controversy stems from findings released by the Department of Food, Civil Supplies, Consumer Affairs and Legal Metrology, Government of Karnataka, which claimed that petrol sold at certain retail outlets in the state contained between 26 per cent and 31 per cent ethanol.
Addressing the issue on social media, Joshi noted that the certificates issued by Karnataka only mention 'Ethanol % by Gas Chromatography' without detailing the test method, calibration, dilution, or reference sample. He further pointed out density discrepancies, stating that the samples showing 26 to 31 per cent ethanol recorded densities of 0.742 to 0.749 g/cc. In contrast, samples tested by Oil Marketing Companies (OMCs) confirming compliant E20 petrol recorded higher densities ranging from 0.752 to 0.760 g/cc.
According to the Minister, petrol with more than 20 per cent ethanol content should display a significantly higher density. Furthermore, he emphasized that none of the laboratories that tested the state's samples were part of the approved schedule 3 laboratories notified in the gazette. These deficiencies in sampling procedures, retention samples, and lab certifications led him to question the overall measurement credibility.
Highlighting what he described as a fundamental policy contradiction, Joshi pointed to Karnataka's own ethanol production figures. For the 2025–26 period, Karnataka distilleries were allocated 165.89 crore litres of ethanol, which includes 97.54 crore litres from sugarcane-based feedstocks. Out of 30 lakh tonnes of sugar diverted for ethanol across India, Karnataka accounted for 11.92 lakh metric tonnes as of August 31, 2026, representing nearly 40 per cent of national diversion.
'If the Karnataka Government believes ethanol blending is detrimental to farmers, why does it seek greater ethanol allocation for its sugar industry?' Joshi questioned.
Defending the broader national initiative, the Minister noted that the ethanol programme has helped India save over ₹1.97 lakh crore in foreign exchange, substitute approximately 316 lakh tonnes of crude oil imports, and reduce carbon dioxide emissions by approximately 952 lakh tonnes.
Previously, PSU OMCs issued a joint statement responding to Karnataka's claims, stating that the certificates provided by the state lack the complete technical details necessary to independently verify the reported ethanol content. The absence of counterpart samples and prescribed documentation also prevented OMCs and dealers from seeking verification or retesting.
"This issue highlights the critical importance of standardized testing protocols and data transparency in regulated sectors like energy and fuel distribution. When policy objectives at the central and state levels intersect with industrial supply chains, adherence to notified laboratory standards and verifiable sampling procedures becomes essential to maintain market stability and investor confidence." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
Recent StartupLanes Articles
Browse through our 30 latest publications on venture capital, startups, and angel investing.