'E20 Actually Has Over 30% Ethanol': Karnataka Minister Cites Petrol Tests, Demands Consumer Relief Fund

Petrol sold by major oil companies in Karnataka contains ethanol well above the permitted 20 per cent in what's marketed as E20, with one Indian Oil Corporation Limited (IOCL) sample recording 31.2 per cent, a minister in the state's Congress government said on Friday, demanding that the BJP-led Centre penalise the companies for "over-blending" and compensate consumers whose vehicles have been damaged.

Announcing the test results from accredited labs at a press conference in Bengaluru, Karnataka's Minister for Food, Civil Supplies and Consumer Affairs, Rizwan Arshad, said the department had collected 63 petrol samples from across the state.

IOCL petrol recorded an ethanol blend of 31.2 per cent, while Hindustan Petroleum Corporation Limited (HPCL) recorded 30.5 per cent, he said. Samples from another government-owned firm, Bharat Petroleum Corporation Limited (BPCL), and private firms Nayara and Shell showed 26.5, 26.1, and 25.5 per cent, respectively. Bengaluru was among the districts where samples exceeded the 20 per cent limit.

Arshad said the samples were first sent to in-house labs of IOCL and BPCL, but the reports did not disclose ethanol content, even though it is one of the prescribed testing parameters. "This raises serious concerns about transparency," he said.

The department then had the same samples tested at laboratories recognised by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and the International Organization for Standardization (ISO). "These reports have revealed higher ethanol blends," Arshad said.

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Arshad questioned whether the vehicles on Indian roads could run on blends above E20. He said 99 per cent of India's more than 35 crore vehicles were not built for blends above 20 per cent.

"If we are only beginning to manufacture E20-compliant vehicles after 2023, what proportion of the total vehicle population does this represent? It is a very small fraction; only a tiny percentage of vehicles are E20-compliant. If the ethanol blend exceeds E20, even these E20-compliant vehicles will face problems," he said.

Arshad estimated the "hidden loss" to consumers at about Rs 62,000 crore a year. Photo: NDTV File

"With lower-ethanol blend petrol withdrawn from nearly one lakh fuel stations, the consumer has been left with no alternative," he added.

Referring to the Automotive Research Association of India (ARAI), which certifies vehicles, engines and fuels, he said, "For the average vehicle, the fuel-system components such as rubber parts, hoses, gaskets, seals, and O-rings will all begin to deteriorate."

Arshad estimated the "hidden loss" to consumers at about Rs 62,000 crore a year. He based this figure on an assumed 10 per cent loss in mileage, petrol at Rs 100 a litre, and annual national fuel consumption of 6,200 crore litres. Adding damage and repair costs, he put the loss at about Rs 1 lakh crore.

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Arshad made four demands of the central government.

The first was action against all OMCs supplying petrol with more than 20 per cent ethanol.

The second was an "E20 spoilage fund" to compensate every consumer whose vehicle has been damaged, through a time-bound claims process with the damage certified by authorised service centres.

The third was a nationwide rule requiring every fuel pump to display the ethanol blend percentage.

"Every fuel pump in the country should be mandated to display ethanol blend percentage, allowing consumers to choose between the range of blends available," he said.

His fourth demand was that the Centre publicly clarify the actual ethanol blend being supplied to consumers. "The Union Government, OMCs, and vehicle manufacturers are making windfall profits at the cost of consumers," Arshad alleged.

He said the state government would submit the findings to the Centre, continue testing petrol, and release its findings.

The ethanol blending programme, led by the Centre, aims to reduce India's dependence on imported crude oil, cut fuel import costs and promote domestically produced ethanol. The rollout of E20 petrol has raised concerns about vehicle compatibility, mileage and possible engine damage. Leader of the Opposition in the Lok Sabha, Rahul Gandhi has criticised the Union government over the issue.

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The Centre has repeatedly rejected concerns over E20 petrol, and said ethanol produced from cane and maize boosts farmers' incomes. Union Road Transport Minister Nitin Gadkari said last month too that the backlash was a "paid campaign". Petroleum Minister Hardeep Singh Puri has called reports of vehicle problems a "misrepresentation". Prime Minister Narendra Modi has cited savings on crude imports as one of the success markers of the programme.