Explained: What is Karnataka’s ethanol problem and why have OMCs rejected state government’s excessive blending demands? | Today’s news

State-owned oil marketing companies (OMCs) Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have rejected Karnataka’s claim that petrol sold at some retail outlets in the state contained ethanol exceeding the prescribed limit of 20%.

The companies have questioned the sampling and testing procedures adopted by the state government, saying that the reported findings cannot be independently verified as per the prescribed technical standards.

In a joint statement on Friday, the three OMCs said the claim that petrol sold at certain outlets contained 26% to 31% ethanol was not supported by tests conducted in accordance with legal and technical procedures, ANI reported. They claimed that the E20 petrol supplied by them across the country, including Karnataka, conforms to Bureau of Indian Standards (BIS) specification IS 17021.

The companies expressed concern about the sampling conducted in October 2026, stating that the samples were taken without the participation of OMC representatives. They also said that they did not receive matching retention samples, full details of outlets or lab reports despite seeking them through the state level coordinator.

The dispute follows the Karnataka government’s claim that tests of petrol samples taken from seven districts found ethanol concentrations above the E20 limit. According to a government statement cited by the Hindustan Times, 11 out of 14 samples tested crossed the 20% mark.

The highest concentration, 31.2%, was recorded in a sample taken from the IOCL outlet. The HPCL Power sample contained 30.5% ethanol, while another HPCL sample recorded 27%. The BPCL Speed ​​sample had an ethanol concentration of 26.5%.

Samples were collected from petrol stations in Bengaluru, Kolar, Chikkaballapura, Bengaluru Rural, Ramanagara, Mangaluru and Tumakuru. The state government said the testing was done at the Shriram Research Institute in Bengaluru using gas chromatography.

Why OMCs questioned Karnataka’s testing procedure

The oil companies said the October exercise did not follow the sampling, storage and testing procedures prescribed in the Motor Spirit and High Speed ​​Diesel (Regulation of Supply, Distribution and Prevention of Unfair Practices) Regulations 2005, read with the Marketing Guidelines (MDG) 2024.

Six one-liter samples must be taken according to the prescribed procedure. Two are given to the seller against confirmation, two are retained by the oil company or department, and two are sent to the laboratory specified in the inspection order or notified in the Official Gazette. The sample labels must also be jointly signed and the test results will be communicated to the dealer and the oil company within the prescribed time frame.

The OMCs said that the samples collected during the exercise in Karnataka in September 2026 were routed through the state-level coordinator to designated OMC laboratories and tested for quality parameters required under MDG 2024. However, they claimed that the subsequent exercise in October was conducted without their representatives.

The companies also disputed the laboratory certificates cited by the state government, saying they did not specify the full technical details needed to verify the reported ethanol concentrations.

According to OMC, IS 17021:2018, including Amendment No. 3 issued in August 2025, prescribes methods for determining the ethanol content of E20 fuel. These include Fourier Transform Infrared Spectroscopy (FTIR) according to ASTM D5845, water extraction according to Annex C, or gas chromatography according to ASTM D4815/D6839.

The companies said that when using gas chromatography, the sample must first be diluted 1:1 with oxygen-free gasoline and the result corrected against an E10-certified reference material. They argued that the certificates cited by Karnataka merely stated the percentage of ethanol by gas chromatography without specifying the applicable standard, dilution procedure or reference material.

In the absence of these details and counterpart samples, the OMCs said, the reported ethanol levels of 26-31% cannot be independently validated against the prescribed methodology.

OMC cites tests of 893 samples in 27 states and UTs

The three companies also reported joint quality monitoring conducted with the Center for Advanced Technologies. They said all 893 samples of E20 tested from their warehouses and retail stores in 27 states and Union Territories were within the prescribed ethanol range of 19-21%.

The exercise included 56 samples from Karnataka that recorded ethanol concentrations between 19% and 20%, with an average of 19.30%, according to the OMC.

They said ethanol blending at their refineries and warehouses is done using calibrated and controlled systems, with automatic calibration and batching arrangements that control the process.

The companies also claimed that more than 30 million two-wheelers and 4 million four-wheelers have been running on E20 fuel for more than three years. They said there were no widespread reports of vehicle failures that would indicate a systemic problem with fuel quality.

Karnataka indicates potential impact on vehicle owners

The Government of Karnataka has expressed concern about the impact of higher concentrations of ethanol on vehicle performance and fuel efficiency, particularly for vehicles designed to run on lower ethanol blends.

The state estimated that motorists may lose around ₹62,000 crore annually due to lower mileage assuming a 10% reduction in fuel consumption across all vehicles. She separately estimated the annual cost of vehicle repairs at ₹39,000 crore, bringing the combined potential burden to approx ₹1.01 million crores.

The OMC rejected these estimates, saying that using a flat assumption of 10% loss in mileage across the entire vehicle population does not constitute a scientifically based assessment. They also stated that the repair cost estimate needs to be supported by actual vehicle performance data, material compatibility studies and documented repair costs.

Karnataka has asked the Union government to explain the ethanol concentrations found in the samples and called for action against oil companies selling petrol containing more than 20% ethanol. The state also required gas stations to disclose the ethanol content of the fuel sold and allow consumers to choose from available blends.