Bengaluru, Nov 7, 2026: Petrol samples collected from various fuel stations across Karnataka have allegedly revealed ethanol blending levels as high as 31.2%, exceeding the prescribed limit of 20%, Consumer Affairs and Legal Metrology Minister Rizwan Arshad said on Friday. He warned that the higher ethanol content could affect nearly 99% of vehicles currently in use.
Addressing a press conference, Arshad called on the Centre to take corrective measures, stating that the state government had collected 63 petrol samples from fuel stations across Karnataka.
However, state-run oil marketing companies have disputed the findings, questioning the sampling and testing procedures adopted by the state government.
In a joint statement, Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) said the findings were not supported by tests conducted in accordance with prescribed statutory and technical procedures. They also raised concerns over the use of certificates issued by third-party laboratories.
“We sent the samples to the in-house laboratories of oil companies to obtain details about their ethanol content. However, none of them provided the information, forcing us to send the samples to ISO-certified and NABL-accredited private laboratories. Samples were tested from seven districts — Bengaluru Urban and Rural, Kolar, Chikkaballapur, Ramanagara, Tumakuru and Mangaluru,” Arshad said.
According to the state government’s findings, ethanol content exceeded 20% in 11 of the 14 samples tested. The minister said this meant that nearly four out of every five samples had higher-than-permitted blending levels. Samples from IOCL and HPCL reportedly recorded ethanol content of 31.2% and 30.5%, respectively.
Arshad said the findings would be shared with the Union Petroleum Ministry.
The minister urged the Centre to revise its ethanol-blending policy and give consumers the option of purchasing E10, E20 or higher-blended petrol. He also called for the creation of a compensation fund to address financial losses caused by excessive ethanol blending.
He further sought penalties against companies found violating prescribed blending limits and asked the Centre to direct automobile manufacturers to extend warranties to cover engine and component damage arising from the use of E20 fuel.
He also urged the Centre to instruct insurance companies to provide coverage for vehicle-related problems linked to E20 petrol.
“Our approach is neither confrontational nor are we opposed to ethanol blending. However, the transition should not affect the common man,” Arshad said, adding that most vehicles currently on Indian roads were not E20-compliant. He pointed out that Brazil had taken nearly 50 years to complete its transition to higher ethanol blending.
Arshad cautioned that the use of E20 petrol could cause vehicle-related problems, alleging that the Centre’s push for higher ethanol blending had not been accompanied by adequate preparation or infrastructure upgrades.
He claimed that apart from the lack of E20 compatibility in nearly 99% of vehicles, fuel dispensing equipment and storage facilities at petrol stations were also not fully compatible with E20.
According to him, gig workers, office-goers, cab drivers and people from lower- and middle-income groups would bear the brunt of increased expenses due to reduced mileage and frequent vehicle repairs.
“Oil marketing companies reported profits of Rs 77,821 crore, while automobile manufacturers also stand to benefit from increased servicing and repair requirements, which account for 30–50% of their business. Higher fuel consumption and repair expenses impose an estimated cumulative burden of Rs 1 lakh crore on consumers,” he added.
Questioning the economic rationale behind compulsory ethanol blending, Arshad referred to a NITI Aayog report dated July 10. He said the report indicated that blended petrol would become cheaper to produce if international crude oil prices rose to $120 per barrel, but would cost more when crude prices remained around $70 per barrel.
Despite the potential savings claimed under the policy, the benefits had not been passed on to consumers through lower petrol prices, he alleged.
The minister also raised environmental concerns over the expansion of ethanol production, pointing out that manufacturing units were water-intensive and categorised as red-category industries. He warned that their expansion could place additional pressure on already stressed water resources.