SC questions Government: If permission given for 100% ethanol-run vehicles, how will supply be made

The Supreme Court was hearing a plea filed by an oil marketing company, which claimed that the High Court’s order would destabilise the national policy of 20% ethanol blending for petrol.

The Supreme Court on Thursday (October 29, 2026) sought to know from the Government that if permission had been given to have 100% ethanol-run vehicles, how supply would be made.

On October 26, the Road Transport Ministry notified changes to the Central Motor Vehicles Rules 1989, allowing flex-fuel vehicles that can run on up to E100 (nearly pure ethanol). E100 fuel allows vehicles to run on nearly pure ethanol.

On October 27, Petroleum and Natural Gas Minister Hardeep Singh Puri said the Centre has no immediate plan to increase the ethanol blending in petrol beyond the current 20%.

While hearing pleas concerning ethanol allocation for Ethanol Supply Year (ESY) 2025-26, the Supreme Court on Thursday (October 29, 2026) referred to recent media reports on the issue.

"Day before yesterday, we saw some newspaper reports wherein it is stated that 100% ethanol driven vehicles are permitted," a Bench of Justices M.M. Sundresh and Prasanna B. Varale said.

"Academically, we want to know if the permission is given to have 100% ethanol run vehicles, how will you make the supply," it asked.

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Responding to the Court's query, Attorney General R. Venkataramani said, "That will require large scale manufacturing re-arrangements."

During the hearing, the Bench stressed on empowering farmers in the country.

The Bench said there was a need to consider the aspect of larger public interest and also look at the issue from the environmental point of view.

"And, the third, I think I would put is much important from the point of view of the larger populace of the country which is the farmers. We have to address the third issue which is how to empower the farmers. This is one aspect which nobody is highlighting," Justice Sundresh observed.

Mr. Venkataramani said he would address the issue concerning farmers during his arguments in the matter.

The Bench said, "We need to empower the common man which is still in the villages."

One of the advocates appearing in the matter said ethanol promotion would help farmers in some form or the other.

Another counsel argued that some of these issues have been factored in the policy of the Central Government.

"The Central Government policy takes into account the aspect of interest of farmers also," the lawyer said.

The Bench posted the matter for hearing next month.

Flex-fuel vehicles are designed to run on higher ethanol blends such as E85 (85% ethanol, 15% petrol) and E100 (near 100% ethanol), unlike conventional petrol vehicles currently approved for lower ethanol concentrations.

Recently, the Ministry of Road Transport and Highways said the amendments update the emission certification provisions by expressly including E100 alongside E85.

On June 30, the Supreme Court had ordered status quo on a Karnataka High Court direction to enhance ethanol allocation for ESY 2025-26.

The SC was hearing a plea filed by an oil marketing company, which claimed that the High Court's order would destabilise the national policy of 20% ethanol blending for petrol.

The High Court had directed Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited to consider and decide a representation submitted by a dedicated ethanol manufacturer seeking enhancement of ethanol allocation for ESY 2025-26.

The High Court had held that dedicated ethanol plants, which were established pursuant to government policy and are contractually bound to supply ethanol exclusively to oil marketing companies, cannot be denied the benefit of preferential allocation contemplated under the long-term offtake agreement.