Karnataka Claims E20 Petrol Has Up To 31.2% Ethanol, Demands Consumer Compensation From Oil Companies

New Delhi: The Karnataka government on Friday, November 6, alleged that petrol sold by major oil marketing companies in the state contained ethanol levels significantly higher than the prescribed 20% limit under the Centre's E20 fuel programme. Laboratory tests reportedly detected ethanol concentrations as high as 31.2% in petrol samples, prompting the state government to demand accountability from oil companies and a compensation mechanism for affected consumers.

Karnataka Food, Civil Supplies, Consumer Affairs and Legal Metrology Minister Rizwan Arshad said samples collected from different parts of the state showed ethanol concentrations exceeding the E20 benchmark.

The highest concentration of 31.2% was reportedly detected in a sample collected from an Indian Oil Corporation Limited (IOCL) outlet, while a Hindustan Petroleum Corporation Limited (HPCL) sample recorded 30.5%.

According to the state government's findings, other samples also showed higher-than-prescribed ethanol content. Bharat Petroleum Corporation Limited (BPCL) petrol recorded 26.5% ethanol, while Nayara Energy and Shell samples showed concentrations of 26.1% and 25.5%, respectively.

The samples were collected from seven districts, including Bengaluru Urban, Bengaluru Rural, Kolar, Chikkaballapura, Ramanagara, Mangaluru and Tumakuru. The government said it had collected 63 samples from major oil marketing companies, including IOCL, HPCL and Shell, before sending them for testing.

Initially, the samples were forwarded to the oil companies' own laboratories along with queries seeking details about their ethanol content. However, the state government alleged that the reports provided by the companies did not clearly disclose the ethanol percentage, prompting it to seek independent laboratory testing.

The samples were subsequently examined by Bengaluru-based Shriram Research Institute, which is accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and ISO-certified.

Karnataka Raises Questions Over E20 Fuel Compliance

The Karnataka government said the findings raised questions about compliance with the prescribed ethanol-blending limit and the quality of petrol being supplied to consumers.

Under the E20 programme, petrol is blended with 20% ethanol and 80% conventional petrol. However, the state government's tests reportedly found several samples containing substantially higher concentrations.

The test results also showed variations across samples collected from the same companies. While one IOCL sample recorded 31.2% ethanol, another contained 20.8%. Similarly, HPCL samples recorded concentrations of 30.5%, 27% and 22.4%.

Among the other findings, two BPCL samples recorded 24.2% and 22.6% ethanol, while another sample registered 19.9%. A Nayara Energy sample contained 20.6%, while an MRPL sample recorded 19.2%. One Shell sample showed 13.5% ethanol.

Arshad questioned how petrol containing more than 30% ethanol could be supplied when the prescribed blending benchmark was 20%. He also sought clarification from the Union government over the actual ethanol content of fuel being sold to consumers.

The Karnataka government is expected to submit its findings to the Centre and has called for action against oil marketing companies found supplying petrol beyond the prescribed limit.

Govt Seeks E20 Compensation Fund For Motorists

The state government has also demanded the creation of an E20 spoilage fund to compensate vehicle owners who may have suffered losses due to excessive ethanol blending.

According to the government, higher ethanol concentrations could contribute to reduced mileage and increased maintenance expenses, particularly for vehicles that are not designed to operate with higher ethanol blends.

The Karnataka government estimated that consumers could face an annual financial burden of nearly Rs 1.01 lakh crore. This includes an estimated Rs 62,000 crore in losses due to reduced mileage, calculated on the assumption of a 10% drop in fuel efficiency, and another Rs 39,000 crore in vehicle servicing and repair expenses.

The government said the proposed compensation mechanism should have a time-bound claims process, with vehicle damage assessed and certified by authorised service centres.

It also argued that consumers should not be made to bear the financial consequences of fuel being supplied with ethanol concentrations exceeding the prescribed limit.

Karnataka Demands Ethanol Content Display At Petrol Pumps

Apart from compensation, the state government has demanded greater transparency in the sale of petrol across the country.

It has called on the Centre to make it mandatory for petrol pumps to publicly display the ethanol percentage in the fuel being sold. The government has also sought a system that allows consumers to choose between different ethanol blends, including E10, E20 and E30, depending on vehicle compatibility and availability.

The state further questioned whether existing petrol dispensing infrastructure and vehicles were adequately equipped to handle higher ethanol concentrations.

Arshad said the government would continue collecting and testing petrol samples across Karnataka and make the findings public. It also indicated that enforcement action could be initiated under the Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 2005, wherever violations are established.

The Karnataka government's allegations have brought renewed attention to the implementation of the E20 programme, particularly concerns surrounding fuel quality, vehicle compatibility and the financial burden on motorists.

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