SC dismissed a PIL challenging the mandatory rollout of E20 fuel nationwide
Complaints over higher costs, lower mileage, and no option for unblended petrol
Experts warn of strain on agriculture and food supply due to rising ethanol demand
A bench comprising CJI B.R. Gavai and Justice K. Vinod Chandran refused to stay the Union’s policy of making E20 fuel mandatory across petrol pumps nationwide. The court delivered its judgement on Tuesday, 2 September 2025, dismissing a plea filed by petitioner Akshay Malhotra.
The plea argued that the mandatory enforcement of the blend violated consumer rights. Citing a NITI Aayog report, ‘Roadmap for Ethanol Blending in India 2020-25’, the petitioner pointed out that E20 is likely to reduce fuel efficiency by 6-7% in cars and 3-4% in two-wheelers. Since consumers have no alternatives, and there is no clear disclosure identifying the E20 blend, this infringes on their right to make informed choices.
He further adds that damage caused to non-E20 compliant vehicles is not covered by manufacturers and insurance companies, instead the cost will be borne by end-users, due to the rapid nature of the rollout and a lack of redressal mechanisms.
The Advocate General, representing the government, argued that ethanol blended petrol will reduce India’s dependence on crude oil imports and reduce CO2 emissions. He presented that ethanol is a more sustainable fuel and its production will benefit sugarcane farmers and save foreign exchange.
The petitioner proposed that E20 deployment not be made mandatory, instead consumers should be given a clearly labelled choice between E20 and unblended petrol.
Since the Union government announced that it had achieved its goal of using only 20% ethanol-mixed petrol by 2025, consumers and car experts have been expressing their grievances and concerns online.
The bench dismissed the petition.
Ethanol is a biofuel - a fuel made from plant based sources such as rice, maize and sugarcane. It is a cheaper, less polluting and more sustainable alternative to fossil fuels.
India first launched its Ethanol Blended Petrol (EBP) programme in 2003, with the aim of reducing pollution and energy dependency, increasing sugarcane production, supporting farmers, and setting up an alternative fuel industry.
By 2014, ethanol blending in India was at 1.5%. In the following decade, ethanol replaced 1.81 Lakh MT of crude oil, cut 544 Lakh MT worth of CO2 emissions, and saved Rs. 11 Crore Lakhs in foreign exchange.
In 2023, The Ministry of Petroleum and Natural Gas announced that it was ahead of schedule in achieving 20% ethanol blending by 2030. It met this goal 5 years ahead of schedule in 2025. E20 refers to this blend of 20% ethanol and 80% petrol.
In spite of all these arguments for ethanol blending, consumers and car experts are pushing back against the new E20 rollout, because even though E20 might have large scale economic benefits, end users are still paying the price.
On the same grounds as the recently rejected PIL, many consumers are unhappy not being able to choose unblended petrol, and the lack of labels clearly distinguishing E20.
Even though E20 was promoted as being a cheaper alternative to normal petrol, it is costing just as much while delivering less power. NITI Aayog even suggested applying tax incentives to E20 to make it more appealing to consumers.
Many consumers have also complained of dramatic decreases in fuel efficiency while using E20. While government sources and some experts have argued that efficiency is likely to decrease by only 6-7% in older cars, many end-users have turned to social media to share evidence of their claims, showing an impact on even E20 compliant cars.
Meanwhile, many auto manufacturers and insurance companies have clarified that they will not be liable for any damage caused to engines due to ethanol blending.
Despite consumer complaints, the government has mentioned increasing ethanol production further over the next few years, without mentioning any clear deadlines.
An increase in ethanol production would mean direct competition with food supplies. Rice and sugarcane are commonly used to make ethanol and both are very water intensive to grow. Ethanol production already uses ⅓ of maize produced in India, while ⅔ is used in poultry farming.
Small poultry farmers are already dealing with rising feed prices, according to The Context. As EBP becomes more essential to the auto industry, supply chains are likely to be impacted, potentially causing droughts and food scarcity. 2024 marked the first year India imported more maize than it exported, trying to keep up with production demand. [Rh/DS]
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