India's oil ministry disputes Karnataka report on excess ethanol in petrol
India's petroleum ministry rejected Karnataka's claim that most petrol pumps sold fuel above the 20% ethanol limit, citing its own tests. State retailers also object.
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what happened
According to Reuters, India's petroleum ministry dismissed a report from authorities in the southern state of Karnataka. The state said most petrol pumps there sold blends with ethanol above the permitted 20% level. The ministry responded that its own testing showed supplies met national standards.
The ministry also questioned how the state collected and tested its samples. State-run retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum disputed the findings too and asked for independent testing of the Karnataka samples.
why it matters
The row comes as India expands the use of E20 fuel, a blend with 20% ethanol that is part of Prime Minister Narendra Modi's push to cut crude imports and support domestic ethanol producers. Opposition leader Rahul Gandhi has demanded that actual ethanol levels be disclosed. A prolonged dispute could weigh on confidence in fuel quality and sentiment toward Indian oil retailers.
market impact
Indian oil retailers: the E20 fuel quality dispute adds uncertainty for the sector.
tags
instruments
sources
- India's oil ministry rejects Karnataka findings of excess ethanol in petrol — Reuters, 7 November 2026 at 13:07 UTC
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