Oil Marketing Companies Reject Karnataka’s Ethanol Claims

The ongoing ethanol issue in Karnataka has led state-run oil marketing companies (OMCs) to dispute allegations made by the state government regarding excessive ethanol levels in petrol. Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) have categorically denied claims that petrol sold at certain retail outlets contained ethanol concentrations exceeding the legally mandated 20 per cent limit. The OMCs have raised concerns about the sampling and testing methods employed by the state, asserting that the findings could not be independently verified against established technical standards.

In a joint statement released on Friday, the three companies stated that the allegations of petrol containing between 26 per cent and 31 per cent ethanol were not substantiated by tests conducted in accordance with statutory and technical protocols. They emphasised that the E20 petrol supplied in Karnataka, as well as across the nation, adheres to the Bureau of Indian Standards (BIS) specification IS 17021.

The dispute arose following the Karnataka government’s assertion that tests conducted on petrol samples from seven districts revealed ethanol concentrations above the E20 limit. According to a statement from the state government, 11 out of 14 samples tested exceeded the 20 per cent threshold, with the highest concentration recorded at 31.2 per cent from an IOCL outlet.

Concerns Over Testing Procedures Raised by OMCs

The oil companies have questioned the validity of the testing procedures followed during the October 2026 sampling exercise. They alleged that the sampling did not comply with the guidelines set forth under the Motor Spirit and High-Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005, and the Marketing Discipline Guidelines (MDG) 2024. The prescribed procedure mandates that six one-litre samples be collected, with specific protocols for handling and testing.

OMCs claimed that the samples collected in October were obtained without the involvement of their representatives, which they argue compromises the integrity of the results. They also noted that they had not received the necessary retention samples or laboratory reports, despite requests made through the State Level Coordinator.

Furthermore, the companies expressed concerns regarding the laboratory certificates referenced by the Karnataka government, stating that these documents lacked the comprehensive technical details required to validate the reported ethanol levels. They highlighted that the methods for determining ethanol content in E20 fuel are outlined in IS 17021:2018, which includes specific testing protocols.

Karnataka Government Highlights Potential Impact on Vehicle Owners

The Karnataka government has voiced apprehensions regarding the implications of elevated ethanol concentrations on vehicle performance and fuel efficiency, particularly for vehicles designed for lower ethanol blends. The state estimates that motorists may be incurring losses of approximately ₹62,000 crore annually due to diminished mileage, assuming a 10 per cent reduction in fuel efficiency across the vehicle population.

In addition, the state has projected annual vehicle repair costs to be around ₹39,000 crore, bringing the total potential financial burden to approximately ₹1.01 lakh crore. However, the OMCs have dismissed these estimates, arguing that a blanket assumption of 10 per cent mileage loss lacks scientific substantiation and that the repair cost estimates require empirical support.

The Karnataka government has sought clarification from the Union government regarding the ethanol levels detected in the samples and has called for action against any oil companies found to be selling petrol with ethanol content exceeding the permissible limit. Furthermore, the state has demanded that petrol stations disclose the ethanol content of their fuel, allowing consumers to make informed choices regarding available blends.

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