Bengaluru: An ethanol blend of 31.2 per cent in petrol sold as E20 has emerged as a major concern in Karnataka, after laboratory tests commissioned by the state government allegedly found that fuel supplied by several oil marketing companies contained significantly more ethanol than the prescribed 20 per cent limit.

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The findings, announced by Karnataka's Minister for Food, Civil Supplies and Consumer Affairs Rizwan Arshad on Friday, have reignited the debate over the Centre's ethanol-blending programme, with the state government accusing oil companies of putting consumers at risk through excessive blending.

According to the test results, petrol samples collected from Indian Oil Corporation Limited (IOCL) outlets recorded the highest ethanol content at 31.2 per cent.

Hindustan Petroleum Corporation Limited (HPCL) followed with 30.5 per cent, while samples from Bharat Petroleum Corporation Limited (BPCL), Nayara and Shell registered 26.5 per cent, 26.1 per cent and 25.5 per cent, respectively.

The department collected 63 petrol samples from different parts of Karnataka. Bengaluru was among the districts where the ethanol content exceeded the stipulated E20 threshold.

Speaking at a press conference in Bengaluru, Arshad questioned the oil companies' testing procedures.

He said the samples were initially sent to IOCL's and BPCL's in-house laboratories. However, the reports did not mention the ethanol content, even though it is one of the prescribed testing parameters.

‘This raises serious concerns about transparency,’ the minister said.

Following this, the department sent the same samples to laboratories accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and recognised under the International Organization for Standardization (ISO). These tests reportedly revealed considerably higher ethanol concentrations.

Concerns over vehicle compatibility

The Karnataka minister also questioned the implications of supplying petrol with ethanol concentrations exceeding 20 per cent, particularly for vehicles that were not designed to operate on such fuel blends.

Arshad argued that 99 per cent of India's vehicle population, comprising more than 35 crore vehicles, was not manufactured to handle ethanol blends exceeding E20.

He pointed out that manufacturers began producing E20-compliant vehicles only after 2023, making the proportion of vehicles equipped to handle the fuel relatively small.

‘If we are only beginning to manufacture E20-compliant vehicles after 2023, what proportion of the total vehicle population does this represent? It is a very small fraction; only a tiny percentage of vehicles are E20-compliant. If the ethanol blend exceeds E20, even these E20-compliant vehicles will face problems,’ he said.

The minister further alleged that consumers were left with no choice after lower-ethanol petrol was withdrawn from nearly one lakh fuel stations across the country.

Citing the Automotive Research Association of India (ARAI), which certifies vehicles, engines and fuels, Arshad warned that excessive ethanol exposure could accelerate the deterioration of critical fuel-system components, including rubber parts, hoses, gaskets, seals and O-rings.

Rs 1 lakh crore consumer loss claimed

Beyond concerns over vehicle compatibility, Arshad highlighted the financial burden that he believes excessive ethanol blending could impose on consumers.

He estimated that reduced fuel efficiency alone could translate into an annual consumer loss of approximately Rs 62,000 crore.

The calculation assumes a 10 per cent reduction in mileage, petrol priced at Rs 100 per litre and annual national petrol consumption of 6,200 crore litres.

When he included potential vehicle damage and repair expenses, the estimated financial impact could rise to around Rs 1 lakh crore, he claimed.

Four demands before the Centre

Arshad outlined four demands to the BJP-led Union government, calling for immediate intervention to protect consumers.

  1. First, he sought punitive action against all oil marketing companies found supplying petrol with ethanol content exceeding the 20 per cent limit.
  2. Second, he proposed creating an E20 spoilage fund to compensate consumers whose vehicles have suffered damage. He called for a time-bound claims mechanism, with vehicle damage assessed and certified by authorised service centres.
  3. Third, the minister demanded that all petrol pumps across the country prominently display the ethanol percentage in the fuel being sold. He said such disclosure would allow consumers to make informed choices based on the available fuel blends.
  4. Fourth, he sought a public clarification from the Centre on the actual ethanol content of petrol being supplied to consumers.

‘The Union Government, OMCs, and vehicle manufacturers are making windfall profits at the cost of consumers,’ Arshad alleged.

The Karnataka government will submit its findings to the Centre and continue collecting and testing petrol samples across the state, the minister said.

Centre defends ethanol blending programme

The controversy comes amid an ongoing national debate over the Centre's ethanol blending programme, which seeks to reduce India's dependence on imported crude oil, lower fuel import expenditure and create greater demand for domestically produced ethanol.

However, the transition to E20 petrol has traised questions oaboutmileage, engine compatibility ,and the possibility of long-term damage to vehicles mbuiltfor lower ethanol blends.

Leader of the Opposition in the Lok Sabha Rahul Gandhi has also criticised the Union government over the programme.

The Centre, meanwhile, has consistently defended E20, arguing that ethanol production from sugarcane and maize supports farmers and strengthens the domestic agricultural economy.

Union Road Transport Minister Nitin Gadkari recently dismissed the criticism surrounding E20 as a 'paid campaign'. Petroleum Minister Hardeep Singh Puri has similarly described reports of vehicle-related problems as a 'misrepresentation'.

Prime Minister Narendra Modi has also highlighted the programme's contribution to reducing crude oil imports as one of its key achievements.

The Karnataka government's latest findings are likely to add another dimension to the debate, shifting the focus from the merits of ethanol blending to questions about fuel quality, regulatory compliance and consumer protection.