Supreme Court Keeps Ethanol Blending Status Quo

The Supreme Court on Tuesday directed a status quo on ethanol supply allocations for the current supply year, temporarily halting a Karnataka High Court order that could have altered the national fuel blending program. The order came during a hearing on an appeal by Bharat Petroleum Corporation Ltd (BPCL), which argued the high court's directive risked destabilizing the government's policy of blending 20 percent ethanol with petrol.

A bench of Justices M.M. Sundresh and Sheel Nagu issued the status quo order and notices to the Union government and 23 distilleries on BPCL's plea. The company is challenging a June 23 Karnataka High Court order that directed three state-run oil marketing companies-BPCL, Hindustan Petroleum Corporation Ltd, and Indian Oil Corporation Ltd-to consider a representation from VINP Distilleries and Sugars seeking enhanced ethanol allocation for the 2025-26 Ethanol Supply Year.

Representing BPCL, Attorney General R. Venkataramani argued that the high court's intervention could disrupt a finalized supply chain. He informed the court that ethanol supply contracts were concluded in October 2025, with allocations communicated to 378 suppliers for a total of...