IOCL and HPCL petrol samples show over 30% ethanol, says Karnataka government; requires action

The Karnataka government alleged that major oil marketing companies (OMCs) were supplying petrol with ethanol content exceeding the prescribed 20% limit, with laboratory tests recording levels as high as 31.2%. The state government has sought action against the companies, raising concerns about the potential impact on vehicles and consumers.

At a press conference on Friday, Minister for Food, Civil Supplies, Consumer Affairs and Legal Metrology Rizwan Arshad said the allegations are based on tests conducted on petrol samples collected from Bengaluru, Kolar, Chikkaballapura, Bengaluru Rural, Ramanagara, Mangaluru and Tumakuru.

According to test results issued by National Accreditation Board for Testing and Calibration Laboratories accredited and ISO certified Shriram Research Institute, Bengaluru, samples from Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) recorded ethanol content of 31.2% and 30.5% respectively.

Karnataka reports ethanol levels higher than E20 in petrol samples

The results also showed ethanol content of 27% in HPCL (MS) petrol, 26.5% in Bharat Petroleum Corporation Limited (BPCL) speed, 26.1% in Nayara, 25.5% in Shell, 24.2% and 22.6% in two samples of BPCL, 22.4% in another sample of HPIOCL and 20.4% in another sample of HPIOCL.

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Among the remaining samples in Motor Spirit (MS) category, ethanol content was recorded as 20.6% in Nayara petrol, 19.9% in BPCL sample, 19.2% in Mangalore Refinery and Petrochemicals Limited (MRPL) sample and 13.5% in Shell sample.

Arshad said samples collected from major fuel companies revealed ethanol content exceeding 20%, with IOCL and HPCL recording the highest levels of 31.2% and 30.5% respectively.

“Oil companies are blending more than 20%. The problem is that E20 compliant vehicles are being produced in the country from 2023. Out of the total number of vehicles, barely a few percent are E20 compliant,” Arshad said.

Blending ethanol beyond E20 could also cause problems for vehicles designed to run on E20-compliant fuel, he said.

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“99 percent of vehicles cannot handle any fuel above E20,” the minister said, referring to ethanol blending.

Karnataka raises concerns about vehicle compatibility and warranties

Arshad said that the leading car manufacturers initially said that their vehicles were not compatible with 20% ethanol.

“But after the (central) government’s intervention, we don’t know what happened. Whether it was an explanation or anything else. All these companies kept quiet about it,” he claimed.

The minister also raised concerns about whether vehicle warranties cover damage caused by E20 fuel.

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A press release issued by him claimed that the petrol samples were initially submitted to the in-house laboratories of IOCL and BPCL, but their test reports did not mention ethanol content despite it being one of the prescribed test parameters.

“This omission raises serious questions about the transparency of companies in the oil market and what they are trying to hide from consumers,” the report said.

The Karnataka government said consumers are bearing the financial burden due to alleged over-mixing, citing reduced mileage and possible damage to vehicle components, including filters, fuel pumps, injectors, hoses and gaskets.

It claimed that 99% of India’s 35 million vehicles were not designed to run on ethanol blends beyond E20. She further stated that even vehicles sold after April 2023 were only certified for mixtures containing up to 20% ethanol.

The state government has also questioned the readiness of the fuel dispensing infrastructure, saying most dispensing units currently in use at petrol stations were designed to handle blends containing only up to 15% ethanol.

Karnataka demands compensation, mandatory disclosure of fuel mix

The state government has sought action against identified OMCs supplying petrol containing more than 20% ethanol. Her demands also include compensation for consumers whose vehicles are damaged, mandatory nationwide disclosure of the ethanol blend percentage at gas stations, and the availability of a variety of fuel blends for consumers to choose from.

It also calls for the establishment of an E20 impairment fund to compensate affected consumers through a time-bound claims process. Vehicle damage would be certified by authorized service centers under the proposed mechanism.

“The Indian government needs to publicly clarify the actual blend of ethanol supplied to consumers,” the report said.

Arshad said the Union Ministers of Road Transport and Highways and Oil and Gas owe an explanation to every Indian as evidence of the alleged over-mixing has now come on record.

He also questioned the consumer benefits of the Centre’s ethanol blending policy, saying the government’s argument that blending has helped save foreign exchange has not translated into any tangible benefit to consumers.

The minister required every petrol pump across the country to display the percentage of ethanol in the blend, allowing consumers to make an informed choice between available fuel blends.

Karnataka invokes fuel supply regulations to crack down on unfair practices

The statement said the Karnataka government has empowered officials under the Motor Spirit and High Speed Diesel (Supply and Distribution and Prevention of Unfair Practices Ordinance, 2005) to take action against unfair practices in the supply and distribution of fuel.

It said the powers were vested in designated officials through a notification dated 15 April 2009. The government said it would ensure “accurate measurement and quality assurance for every liter paid for by its people” under Mission Nikhara launched by Arshad.

The state government said it would continue to conduct tests across Karnataka and make its findings public.

Oil companies did not immediately respond to the allegations.