E20 Petrol Push Gets Judicial Backing: India's Apex Court Dismisses Consumer Plea Seeking Ethanol-Free Fuel

The Supreme Court has reportedly dismissed a Public Interest Litigation (PIL) challenging the Centre's mandate on E20 fuel, which requires blending 20% ethanol with petrol.

The petition had sought the availability of ethanol-free (E0) petrol at all fuel stations and demanded mandatory labelling of ethanol-based fuel to ensure consumer awareness.

The court noted that the government's move aligns with broader energy security and environmental objectives, aimed at reducing crude oil imports and lowering vehicular emissions. With this verdict, the rollout of E20 petrol will proceed as scheduled.

PIL Objectives

The petition argued that many vehicles, particularly those manufactured before April 2023, are not compatible with E20, which could lead to engine corrosion, higher repair costs, and reduced fuel efficiency.

It further alleged that insurance claims linked to such damage are being denied and that consumers have not benefited from ethanol's lower cost. The plea sought mandatory labeling, continued supply of ethanol-free petrol, consumer advisories, and a nationwide study on the impact of E20.

The petition also argued that many consumers remain unaware of whether their vehicles are compatible with the blended fuel. Petitioners highlighted concerns raised by a NITI Aayog report, including potential engine damage and reduced fuel efficiency in vehicles not specifically designed for E20.

The court, presided over by a bench of Chief Justice BR Gavai and Justice K Vinod Chandran, dismissed the plea, noting that automobile manufacturers are now producing vehicles compatible with the blend, reducing the scope for long-term issues.  On behalf of the government, Attorney General R Venkataramani also argued that sugarcane farmers are benefitting from the E20 push.

The Ethanol Story So Far

In August 2024, the Indian government permitted sugar mills to produce ethanol from cane juice, syrup, and B‐heavy molasses, a byproduct with higher sucrose levels. The move was expected to support the goal of blending 20% ethanol into petrol by 2025 - 26.

The original goal of achieving 20% blending (E20) by 2030 was brought forward to 2025 and was met in March 2025. The Indian government aims to blend 30% ethanol into petrol by 2030.

Stocks In Focus

Apart from sugar stocks, companies like Cian Agro Industries & Infrastructure could potentially see further upside due to India's ethanol push. The stock has increased by over 550% in the past year.

Last year, CIAN Agro signed an MoU with Chennai-based Ram Charan Group to collaborate on producing ethanol from carbon dioxide. Nikhil Gadkari, son of India's Minister of Road Transport and Highways Nitin Gadkari, is a managing director of CIAN Agro.

Sugar stocks, including Balrampur Chini, Shree Renuka Sugars, and Bajaj Hindustan gained on Monday.

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