Indian fuel retailers reject Karnataka claim of 26-31% ethanol in petrol

what happened

State-run oil marketers Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have rejected the Karnataka government's claim that petrol at some retail outlets in the state contains 26-31% ethanol. Moody's reported the position, citing a release from the three companies.

The companies said E20 petrol supplied nationwide, including in Karnataka, meets the IS 17021 standard set by the Bureau of Indian Standards. They argued that the testing behind the state's findings did not follow the required procedure: the October 2026 samples were collected without their representatives, and they said they had not received retention samples, outlet-wise details or lab reports despite asking for them.

The companies also questioned the lab certificates, which they said name a gas chromatography test without specifying the standard, dilution method or reference material. Without those details, they said, the 26-31% figures cannot be independently validated. They asked the Karnataka government to share full sampling records, outlet-wise lab reports and the test methodology.

why it matters

The dispute concerns fuel quality and blending rules in one Indian state rather than global crude supply. For markets it matters mainly as a question of how Indian retail fuel is regulated and how state-run marketers operate. If the disagreement drags on, it could affect blending requirements and demand for ethanol as a fuel component.

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