Supreme Court Clears E20 Petrol Policy Despite Concerns For Older Vehicles

The Supreme Court has dismissed a petition challenging India’s mandatory ethanol blending policy, effectively allowing the nationwide rollout of E20 petrol to continue without offering ethanol-free alternatives for older vehicles. The order, delivered on September 1, 2025, by Chief Justice B R Gavai and Justice K Vinod Chandran, came after brief arguments that pitted consumer concerns against national energy priorities.

The Case for Consumer Choice

The petition, filed by Akshay Malhotra, did not oppose ethanol blending in principle but sought the continued availability of E0 or E10 petrol for vehicles built before April 2023. These cars and two-wheelers, according to the plea, are not designed for 20 per cent ethanol content and may face performance and durability issues.

Senior Advocate Shadan Farasat, representing the petitioner, cited government reports that had flagged possible risks to older vehicles. He argued that non-compatible vehicles may suffer a drop in fuel efficiency of around six per cent, faster wear and tear, and corrosion of engine components. Insurance companies allegedly refusing claims for such damage added to the concern.

The petition also raised issues of consumer rights. It pointed out that fuel pumps often lack clear labelling, leaving motorists uncertain about what they are buying. It further argued that while ethanol is cheaper than petrol, pump prices for E20 are the same as regular petrol, meaning consumers see no direct cost benefit.

Government’s Defence of Policy

Attorney General R Venkataramani defended the E20 programme as a matter of national interest. He told the court that ethanol blending supports farmers, reduces oil imports, and saves valuable foreign exchange. He questioned whether India’s energy policies should be influenced by outside interests, hinting at possible lobbying from petroleum companies.

The government’s stance was that the benefits to the economy and environment outweighed the concerns of a smaller pool of older vehicle owners. The Supreme Court appeared to agree, with Chief Justice Gavai delivering a short dismissal, suggesting the matter fell within the government’s policy-making domain.

Concerns That Remain

While the dismissal upholds the policy, it leaves open several issues for consumers. Many older vehicles may now have to run exclusively on E20 petrol, raising questions about maintenance costs and reliability.

The plea had argued for clearer pump labelling and consumer advisories, similar to systems in the United States and European Union where ethanol-free petrol remains available alongside blended options. None of these suggestions were taken up by the court.

The petition also highlighted how cost savings from blending have not been passed on to motorists. Ethanol is cheaper to produce than petrol, but retail pricing has not reflected this, leaving consumers paying the same rates despite changes in composition.

Implications for Drivers

The judgment reinforces the government’s authority to set energy and environmental policy, but for owners of vehicles built before 2023, it brings uncertainty. Reduced fuel efficiency and potential engine problems may become more common as the programme expands nationwide. Without ethanol-free options, motorists with incompatible vehicles will have little choice but to adapt.

The E20 petrol rollout is part of India’s larger strategy to cut carbon emissions and reduce oil dependence, and the court has signalled its support for that direction. But for many consumers, the practical challenges of running older vehicles on E20 remain unresolved.