Institute of Legal and Management Studies

The Supreme Court on Monday (September 1) dismissed a PIL challenging the Union Government's Ethanol Blending Programme mandating the sale of petrol blended with 20% ethanol (E20).

A bench of Chief Justice BR Gavai and Justice K Vinod Chandran heard the matter.

Senior Advocate Shadan Farasat, for the petitioner, referred to a 2021 NITI Ayog Report, which he said, expressed concerns about the impact on older vehicles which are not compliant with E20. He clarified that the petitioner was not against Ethanol-blending, but was only seeking an option of Ethanol-free petrol for vehicles manufactured before 2023, which are not compatible with E20.

Farasat said that only vehicles which are manufactured after April 2023 are compliant with E20 petrol. He referred to reports regarding 6% drop in fuel efficiency due to the use of E20. He highlighted that the NITI Ayog also expressed concerns about the lack of availability of E10 or E0 petrol options in parallel.

Attorney General for India R Venkataramani opposed the petition saying that the petitioner was only a "name-lender" and that there was a huge lobby behind him. He asserted that the Government has framed the policy after considering all aspects. AG said that the policy was benefiting India's sugarcane farmers. "Will people outside the country dictate what kind of fuel India should use?", AG exclaimed.

After the AG's submission, the CJI pronounced, "Dismissed."

Background

The petition argues that the programme violates the fundamental rights of vehicle owners whose vehicles are incompatible with E20, as it leaves no option to purchase ethanol-free petrol (E0). It contends that the absence of public awareness and proper labelling of fuel pumps breaches the right to informed consumer choice under the Consumer Protection Act, 2019.

The plea states that most vehicles manufactured before April 2023 and even some BS-VI compliant vehicles from the last two years are not suitable for E20. It claims that the higher ethanol content leads to corrosion of engine parts, reduced fuel efficiency, premature wear and tear, and increased repair costs. Insurance claims are allegedly being denied due to such damage.

The petition also alleges that despite ethanol being cheaper than petrol, the cost benefit has not been passed on to consumers, and fuel stations continue to charge the same price. It contrasts India's practice with that of the US and EU, where ethanol-free petrol remains available and blended fuels are clearly labelled.

The PIL seeks directions to ensure the continued availability of E0 petrol, mandatory labelling of fuel pumps, consumer advisories regarding vehicle compatibility, enforcement of consumer protection norms, and a nationwide study on the impact of E20 on non-compatible vehicles.

Case: Akshay Malhotra v. Union of India | W.P.(C) No. 000813 / 2025