Supreme Court of India ordered status quo on Karnataka High Court directive to reopen ethanol allocation for 2025–26. Move follows plea from Bharat Petroleum Corporation Ltd. (BPCL), arguing that changes could disrupt government's 20% ethanol blending goal, E20 fuel .
On June 16,2026,Karnataka High Court told oil companies like BPCL,Hindustan Petroleum (HPCL),and Indian Oil (IOCL) to reconsider VINP Distilleries' request for more ethanol before closing tenders. Court stressed that ethanol plants, built under government policy, shouldn't lose out on promised allocations.
Attorney General R. Venkataramani, for BPCL,said allocation was done by October 17,2025. About 1,050 crore litres assigned to 378 suppliers out of 1,759 crore litres offered. By June 18,680 crore litres already supplied. He warned changing allocation for one could trigger demands from others,risking entire framework .
He said, “Effect of this order is there are about 75 similarly placed suppliers... We have to undo allocation for all of them.” Venkataramani noted ethanol program still evolving,impact clearer over time . “Every year there may either be spurt in demand or fall in demand,” he said, as government experiments with 20% target.
Justices M.M . Sundresh and Sheel Nagu questioned BPCL's choice to go straight to Supreme Court instead of Division Bench of Karnataka High Court. Venkataramani pointed out similar cases pending in various courts,needing unified ruling before next supply round in October. Multiple appeals would slow things down.
Senior advocate Sidhartha Dave,for VINP Distilleries,called transfer petition a “bogey.” After arguments, Bench issued notice on plea,told parties to keep status quo until court resumes on July 13.
Ministry of Law and Justice,through Attorney General's office, denied reports calling E20 program an “experiment.” Statement clarified government never labeled E20 initiative as such,countering misrepresentations of Union's submissions.
Union government revised National Policy on Biofuels in 2022 to speed up ethanol blending . Targets set: 12.06% for 2022–23,14.6% for 2023–24, 17.98% for 2024–25,aiming for 20% blending. Target met, but critics question impact on older vehicles and fuel efficiency . Centre dismisses concerns, no evidence ethanol-blended petrol harms vehicles…
