Karnataka finds ethanol blending of up to 31.2% in petrol, seeks explanation from Union government

The Karnataka government has alleged that petrol sold by major oil marketing companies in the state contains ethanol in excess of the prescribed 20% blend, with laboratory tests recording levels as high as 31.2%.

Food and Civil Supplies Minister Rizwan Arshad, who released the findings at a press conference on Friday, November 6, said the state government had tested 63 petrol samples collected from different parts of Karnataka, including Bengaluru, Kolar, Chikkaballapura, Bengaluru Rural, Ramanagara, Mangaluru and Tumakuru.

According to the findings released by the department, samples from Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), Nayara Energy, Shell and Mangalore Refinery and Petrochemicals Limited (MRPL) showed ethanol content exceeding 20% in several instances.

The highest ethanol content recorded was 31.2% in an IOCL petrol sample, followed by 30.5% in an HPCL Power sample. Other samples recorded levels of 27%, 26.5%, 26.1%, 25.5%, 24.2%, 22.6%, 22.4%, 20.8% and 20.6%. The lowest recorded level was 13.5%.

Arshad said the government initiated the testing after receiving complaints from motorists about reduced mileage and vehicles requiring frequent repairs.

The minister said the samples were initially sent to the in-house laboratories of IOCL and BPCL. However, the reports did not disclose the ethanol content, despite it being one of the prescribed testing parameters.

"A questionnaire was sent to the laboratories of the oil marketing companies. One of the questions was about the ethanol content in their respective products. None of the companies provided an answer to that question for any of the 63 samples. This made us suspicious, so we decided to send the samples to private NABL-accredited laboratories," he said.

Arshad said that, based on the results, nearly four out of five samples tested showed ethanol blending above 20%. He described Karnataka as the first state to conduct such testing and publicly release the findings.

The minister alleged that the higher ethanol content could affect vehicle performance, particularly in vehicles that were not designed to run on fuel with blends exceeding E20. He said that nearly 99% of India's 35 crore vehicles were not built to handle ethanol blends above 20%, and that even vehicles manufactured after April 2023 were certified only for E20.

The government also flagged concerns about fuel dispensing infrastructure. Arshad said that several dispensing units installed at petrol pumps were designed to handle ethanol blends of only up to 15%. He cited Mitco, a popular manufacturer of dispensing equipment, as an example, saying its machines were certified for blends up to E15.

The minister further alleged that automobile manufacturers had become less forthcoming about the ethanol compatibility of their vehicles following the Union government's intervention. He also questioned the removal of fuel-related damage clauses from insurance policies, saying consumers were being left to bear the cost of repairs.

In its press release, the Karnataka government estimated that consumers could be facing an annual financial burden of nearly Rs 1.01 lakh crore due to reduced mileage and vehicle repairs. It arrived at this estimate by calculating a potential Rs 62,000 crore annual loss from a 10% reduction in mileage and another Rs 39,000 crore in vehicle repair costs. 

Modern BS6 vehicles have been redesigned to run on E20 fuel, with manufacturers upgrading engine components and software to make them compatible. However, the transition can still result in reduced mileage. 

According to a 2021 NITI Aayog report, vehicles specifically designed for E20 could see a mileage reduction of 1–2%, while older cars could experience a drop of 6–7% and older two-wheelers a reduction of 3–4%. This also raises concerns for vehicles manufactured before the BS6 era, many of which were not designed for higher ethanol blends. 

A vehicle is legally expected to have a lifespan of at least 15 years, but exposure to higher ethanol blends can pose additional challenges for ageing engines. Ethanol, which acts as a cleaning agent, can loosen deposits inside older engines, potentially dislodging sludge that may clog fuel filters and other components of the fuel system.

Arshad also questioned the benefits of the ethanol-blending programme for consumers, arguing that while the Union government has maintained that the policy helps save foreign exchange by reducing crude oil imports, motorists have not received any corresponding benefit.

He pointed to the combined profits of IOCL, BPCL and HPCL, which the state government put at Rs 77,821 crore in the financial year 2025-26, and questioned why consumers should bear the costs of over-blending.

The minister called on Union Ministers for Road Transport and Highways Nitin Gadkari and Petroleum and Natural Gas Hardeep Singh Puri to explain how petrol with ethanol content exceeding 20% was being supplied to consumers.

He also referred to Gadkari's 2018 statement that petrol prices would eventually come down to Rs 55 per litre following the introduction of E20 fuel, questioning whether that promise had been fulfilled.

"We have done this out of goodwill. But the Union government and Minister Hardeep Puri must explain who is responsible for the over-blending and what the interest of Nitin Gadkari is in this," Arshad said.

Under India's ethanol-blending programme, ethanol is blended with petrol by oil marketing companies at designated supply and terminal facilities before the fuel is transported to petrol pumps. 

The Karnataka government has called for action against oil marketing companies found supplying petrol with ethanol content above 20%, a compensation mechanism for consumers whose vehicles have allegedly been damaged by higher blends, and mandatory display of ethanol percentages at fuel stations. It has also demanded that consumers be given a choice between different fuel blends.

The findings come amid a wider debate over India's ethanol-blending programme. The Union government has defended the rollout of E20 petrol, citing its potential to reduce crude oil imports, emissions and dependence on fossil fuels.

The Union government had earlier ruled out any immediate plans to increase ethanol blending in petrol beyond the current 20% level. In October, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri dismissed concerns surrounding E20 fuel as a “contrived narrative”, reiterating that 20% was the government's target and that there were no plans to raise the blending level further.