energy

Karnataka questions Centre over 30% ethanol blend in petrol as row deepens

Karnataka minister Rizwan Arshad accused the Centre of allowing 30% ethanol in petrol and asked why oil companies tested the fuel themselves.

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what happened

According to Moody's, Karnataka minister Rizwan Arshad said the central government has not provided a report on 63 petrol samples the state sent for testing. He questioned whether it is fair for oil companies that supply the fuel to also test it, and said Centre policy called for a 20% ethanol blend rather than 30%.

Arshad also demanded a response from Union Petroleum Minister Hardeep Singh Puri and criticised Union Minister Pralhad Joshi, who had accused Congress of misleading the public. Joshi cited crude, petrol and maize-based ethanol prices and said the policy aimed to support farmers and reduce import dependence.

The Ministry of Petroleum and Natural Gas said all 893 E20 samples from state-run marketers in 27 states and union territories met quality standards, and three state-run OMCs described blending as an automated process. The Karnataka government has rejected that joint statement.

why it matters

For markets this is mainly a domestic political dispute. It concerns the ethanol share in India's fuel and possible pressure on oil companies and crude imports, but the text gives no concrete decisions on prices or volumes.

tags

instruments

BrentPetrol IndiaEthanol

on polymarket

sources

  1. Karnataka Minister Rizwan Arshad questions Centre as row over ethanol blending in petrol deepens — Moody's, 12 November 2026 at 03:19 UTC

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