Karnataka Alleges Oil Companies Sold Petrol With Excess Ethanol

The Government of Karnataka has accused major oil marketing companies of selling petrol with ethanol concentrations significantly exceeding the prescribed 20% (E20) limit. Following directions from Chief Minister D.K. Shivakumar, the Department of Legal Metrology tested 63 samples from districts including Bengaluru and Mangaluru. Results from the Shriram Research Institute and other NABL-accredited labs showed ethanol levels as high as 31.2% for Indian Oil Corporation Limited (IOCL), 30.5% for Hindustan Petroleum Corporation Limited (HPCL), and 26.5% for Bharat Petroleum Corporation Limited (BPCL).

Minister Rizwan Arshad announced the launch of Mission Nikhara to ensure fuel quality and accurate measurement. The state estimates that excessive blending could cost Indian consumers ₹1.01 lakh crore annually due to reduced mileage and vehicle damage, as 99% of India's vehicles are not designed for blends above E20. Karnataka is demanding that the Union government penalize the companies, establish a compensation fund for vehicle owners, and mandate that fuel stations display ethanol percentages.

In a joint statement, IOCL, HPCL, and BPCL refuted the findings, arguing that the state's sampling procedures lacked OMC representation and failed to follow statutory guidelines. The companies stated that their own tests of 893 samples across 27 states and Union Territories showed ethanol levels within the 19-21% range, with Karnataka samples averaging 19.30%. The oil companies have requested full laboratory reports and called for joint independent testing to resolve the dispute.