31.2% ethanol in E20 petrol: Karnataka seeks Centre compensation

Bengaluru: The Karnataka government on Friday alleged that petrol sold by major oil companies contains ethanol far above the mandated 20% limit, with some samples recording concentrations of up to 31.2%, raising concerns over fuel quality and losses to motorists, India Today reported.

Following the findings, Food and Civil Supplies Minister Rizwan Arshad demanded that the Centre establish an “E20 spoilage fund” to compensate consumers for reduced mileage and higher vehicle maintenance costs allegedly caused by excessive ethanol blending.

The state said it had tested 63 petrol samples collected from seven districts, including Bengaluru Urban. Independent tests by the Bengaluru-based Shriram Research Institute found ethanol concentrations of 31.2% in Indian Oil Corporation petrol, 30.5% in Hindustan Petroleum fuel, 26.5% in Bharat Petroleum's Speed, 26.1% in Nayara and 25.5% in Shell.

Several other samples also exceeded the 20% benchmark. Karnataka said it initially sent the samples to the oil companies' laboratories but sought independent testing after allegedly failing to receive clear responses about their ethanol content.

The government estimated that a 10% drop in mileage could cost motorists Rs 62,000 crore annually, while additional vehicle servicing expenses could amount to Rs 39,000 crore.

Karnataka also urged the Centre to publicly disclose the actual ethanol blend supplied to consumers and to compensate motorists for losses allegedly caused by fuel that exceeds the E20 limit.