Ethanol blending: SC stays Karnataka HC order to OMCs for 2025-26

The Supreme Court has ordered a status quo on a Karnataka High Court direction to Oil Marketing Companies (OMCs) regarding ethanol distribution for 2025-26, following a challenge by BPCL citing potential destabilization of the national blending policy.

The Supreme Court on Tuesday ordered status quo with regard to the Karnataka High Court direction to Oil Marketing Companies (OMCs) to revisit the distribution of ethanol for the 2025-2026 supply year.

Challenge to National Ethanol Blending Policy

A bench of Justices MM Sundresh and Justice Sheel Nagu passed the order after Attorney General R Venkataramani, appearing for Bharat Petroleum Corporation Limited (BPCL), said the High Court order has been challenged. Attorney General said the High Court order could destabilise the national policy for 20 per cent ethanol-petrol blending.

The apex court was hearing an appeal of BPCL challenging a June 2026 Karnataka High Court order to Oil Marketing Companies (OMCs) to consider and decide a representation submitted by a distillery seeking enhancement of ethanol allocation for 2025-26.

The bench also issued notice to the company on whose petition the High Court had passed the order. "Issue notice. List on reopening. Till the next date of hearing, there shall be status quo," ordered the top court.

During the hearing, the Attorney General also informed the bench that ethanol supply contracts were finalised in October 2025 itself, and several petitions were pending in various High Courts and sought time to file appropriate transfer petitions.

Background of the High Court Directive

The High Court had directed Oil Marketing Companies (OMCs) -- BPCL, Hindustan Petroleum Corporation Limited and Indian Oil Corporation -- to consider a request by a distillery seeking an increase in its ethanol allocation before the tender process was finalised.

The High Court's order had come on a plea of one M/S Vinp Distilleries and Sugar Private Limited, a dedicated ethanol manufacturer, which had challenged reduced allocation of ethanol supply despite having established a dedicated ethanol plant. (ANI)

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