India’s three state-run oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) — have challenged the Karnataka government’s claim that petrol sold at certain outlets in the state contained excess ethanol. The companies have questioned the sampling procedure and testing methodology used by the state, seeking independent verification of the reported results.
The dispute follows an inspection exercise conducted by Karnataka’s Department of Food, Civil Supplies, Consumer Affairs and Legal Metrology in October 2026. The state claimed that petrol samples collected from select outlets contained between 26% and 31% ethanol, exceeding the prescribed E20 limit. Some samples reportedly recorded levels as high as 31.2%.
Oil Companies Say E20 Samples Meet BIS Standards
In a joint statement, IOC, BPCL and HPCL said the E20 petrol supplied across their networks, including Karnataka, complies with the Bureau of Indian Standards’ IS 17021 specifications. The standard prescribes an ethanol content range of 19–21% for E20 petrol.
The companies cited a nationwide quality-monitoring exercise in which 893 samples collected across 27 states and Union Territories were tested. According to the oil companies, all samples fell within the prescribed range. This included 56 samples from Karnataka, which recorded ethanol levels of 19–20%, averaging 19.30%.
The companies also said the October sampling exercise was conducted without the participation of their representatives. They claimed they had not received the corresponding retained samples, outlet-wise details or complete laboratory reports needed to independently verify the findings.
Questions Over Testing Methodology
The oil companies have argued that the sampling procedure must follow the Motor Spirit and High Speed Diesel Control Order, 2005, along with the Marketing Discipline Guidelines, 2024. These rules prescribe the collection of six one-litre samples, with two handed to the dealer, two retained by the oil company or department, and two sent to a designated laboratory.
They have also questioned the technical details in the third-party laboratory certificates cited by Karnataka. According to the companies, the certificates mention gas chromatography but do not specify the applicable testing standard, dilution procedure or reference material used to validate the ethanol content.
The companies further flagged discrepancies in the density readings reported in the certificates, saying the figures require verification through the prescribed testing procedures.
Companies Seek Fresh Tests
IOC, BPCL and HPCL have asked the Karnataka government to share the complete sampling records, laboratory reports and testing details. They have also sought access to the retained samples for independent testing at an authorised laboratory, with representatives of both sides present.
The companies disputed estimates of ₹62,000 crore in annual mileage losses and ₹39,000 crore in vehicle repair costs linked to E20 petrol. They said these estimates require scientific evidence and cannot be based on a blanket assumption of mileage loss across all vehicles.
The dispute comes amid India’s broader ethanol-blending programme, which aims to reduce crude oil imports and strengthen domestic energy security. The reported excess-ethanol levels remain contested, with the oil companies calling for fresh tests under the prescribed procedures.
