Oil Companies Reject Karnataka 30% Ethanol Charge on E20 Petrol
State-run oil marketing companies have rejected allegations by the Karnataka government claiming that retail petrol contains ethanol blending levels between 26% and 31%, well above the mandated 20% limit. In a joint statement, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited clarified that all E20 motor gasoline supplied across the country conforms to Bureau of Indian Standards specification IS 17021. The oil companies stated that the test results publicized by Karnataka's Department of Food, Civil Supplies, Consumer Affairs and Legal Metrology were not conducted in accordance with prescribed statutory protocols. The dispute emerged after Karnataka Consumer Affairs Minister Rizwan Arshad presented findings from 63 fuel samples collected across districts including Bengaluru, Kolar, and Mangaluru.
Karnataka Testing Claims and Alleged Consumer Losses
State laboratory tests revealed ethanol concentrations reaching as high as 31.2% in an Indian Oil sample and 30.5% in a Hindustan Petroleum Power sample. The state minister asserted that nearly four out of five samples exceeded the 20% blending threshold, claiming that excessive ethanol damages vehicle engines. Arshad projected a national consumer loss of approximately Rs 62,000 crore annually from an assumed 10% drop in mileage alongside Rs 39,000 crore in repair expenses, aggregating to Rs 1.01 lakh crore. The minister demanded that the Union government penalize oil marketing firms, establish a dedicated consumer compensation fund, and mandate real-time ethanol disclosure at retail pumps. Fuel samples initially submitted to in-house laboratories of IOC and BPCL yielded test reports that omitted ethanol content disclosures, prompting tests at independent NABL laboratories, according to Business Standard.
Technical Objections and Statutory Sampling Violations
Responding to the charges, the oil marketing companies flagged major procedural anomalies in the October 2026 sampling drive conducted by state officials. The companies noted that the Motor Spirit and High Speed Diesel Control Order of 2005 and Marketing Discipline Guidelines 2024 mandate drawing six one-litre samples in the presence of company representatives. State authorities failed to provide duplicate retention samples, outlet-level documentation, or full technical laboratory logs, according to NDTV. The oil refiners also pointed out that standard gas chromatography testing under IS 17021 requires a 1:1 dilution with oxygenate-free fuel and calibration against certified reference materials, which the state's third-party certificates omitted.
Fleet Reliability and Joint Referee Verification
The oil marketing companies dismissed the state's financial loss estimates as unscientific extrapolations detached from real-world operating conditions. The companies emphasized that over 30 crore two-wheelers and 4 crore four-wheelers have operated on E20 fuel for more than three years without widespread mechanical failures. The public sector firms requested the Karnataka government to provide counterpart samples for referee testing at authorized laboratories in the joint presence of state and industry representatives.