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Supreme Court Freezes Ethanol Allocations Pending Consolidation

The order is meant to stop conflicting High Court rulings from disrupting national ethanol supplies before annual contracts are renewed in October.

Overview

  • On Tuesday the Supreme Court directed parties to maintain status quo on ethanol supply allocations for the Ethanol Supply Year 2025–26 while it hears BPCL’s appeal of a Karnataka High Court order.
  • The Centre told the court that allocations were finalised in October 2025 and communicated to 378 suppliers for about 1,050 crore litres, with roughly 680 crore litres supplied by June 18.
  • Multiple media reports said Attorney General R. Venkataramani described the 20% ethanol blend as an 'experiment' but the Office of the Attorney General and the Law Ministry issued an explicit denial that any such submission was made in court.
  • The government said it will file transfer petitions to move similar allocation disputes from various High Courts to the Supreme Court to avoid parallel litigation that could reopen contracts and disrupt E20 supplies.
  • E20 means petrol blended with 20% ethanol, the Union Oil Ministry says the blend meets safety standards and supports farmers and energy security while motorists continue to raise vehicle-compatibility and insurance concerns as the government eyes 30% blending by 2030.