Congress leader Rahul Gandhi on Saturday accused the Centre and major oil marketing companies of effectively stealing petrol from consumers by allegedly supplying fuel containing more than the prescribed 20 per cent ethanol. Citing laboratory tests of petrol samples collected across seven districts of Karnataka, the Leader of the Opposition in the Lok Sabha demanded accountability and questioned the transparency of the government's ethanol-blending programme.
Taking a swipe at Prime Minister Narendra Modi, Gandhi wrote in Hindi on X: "E20 turned into 420 - stealing petrol from the public's cars!" The reference was to Section 420 of the erstwhile Indian Penal Code, which dealt with cheating.
Gandhi claimed that although the government maintains that petrol contains 20 per cent ethanol, tests conducted on samples collected in Karnataka had revealed significantly higher concentrations. According to the findings he cited, 11 of 14 samples tested contained more than 20 per cent ethanol, with some recording levels above 30 per cent.
"The Karnataka government collected petrol samples from 7 districts and had them tested at an accredited lab. Look at the results. 11 out of 14 samples contained more than 20 per cent ethanol; 31.2 per cent at IOCL, 30.5 per cent at HPCL; IOCL, HPCL, BPCL, Nayara, Shell, whether government-owned or private, all exceeded the limit," Gandhi alleged.
He further claimed that the companies' own laboratories had failed to disclose the ethanol content in their test reports, raising questions about transparency and consumer protection.
Rahul Gandhi renews debate challenge to PM Modi
The Congress leader also used the controversy to renew his challenge to Prime Minister Modi for an open debate, saying the ethanol-blending issue could be included in the proposed discussion.
Gandhi has repeatedly challenged the Prime Minister to debate allegations of irregularities in the Special Intensive Revision (SIR) of electoral rolls, which he has described as "vote chori". His latest remarks came after weeks of protests by the Congress over the alleged manipulation of electoral rolls.
Questioning the government over the actual composition of petrol being supplied to consumers, Gandhi asked: "Modi ji, tell us, what's being put in the country's tank? How much ethanol is actually in the petrol? When will action be taken against companies mixing more than 20 per cent ethanol?"
He also argued that motorists were paying for petrol at prevailing prices while allegedly receiving fuel containing a higher proportion of ethanol than prescribed. According to him, excessive blending could reduce vehicle mileage, affect engine performance and increase maintenance expenses.
Gandhi questioned why petrol pumps did not display labels specifying the ethanol content of the fuel being sold, saying consumers should have access to information about what they were purchasing.
What Karnataka's laboratory tests revealed
The controversy intensified after the Karnataka government alleged on Friday that major oil marketing companies were supplying petrol containing ethanol levels above the prescribed 20 per cent limit.
Food, Civil Supplies, Consumer Affairs and Legal Metrology Minister Rizwan Arshad said the state government had collected petrol samples from seven districts: Bengaluru, Kolar, Chikkaballapura, Bengaluru Rural, Ramanagara, Mangaluru and Tumakuru.
The samples were tested at the Bengaluru-based Shriram Research Institute, which is accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and ISO-certified.
According to the findings presented by the state government, samples from Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) recorded ethanol concentrations of 31.2 per cent and 30.5 per cent, respectively.
Other samples reportedly showed 27 per cent ethanol in HPCL motor spirit, 26.5 per cent in Bharat Petroleum Corporation Limited's (BPCL) Speed petrol, 26.1 per cent in Nayara Energy and 25.5 per cent in Shell petrol. Two other BPCL samples recorded 24.2 per cent and 22.6 per cent, while another HPCL sample contained 22.4 per cent and an IOCL sample recorded 20.8 per cent.
Among the other samples, Nayara petrol recorded 20.6 per cent ethanol, while BPCL and Mangalore Refinery and Petrochemicals Limited (MRPL) samples recorded 19.9 per cent and 19.2 per cent, respectively. One Shell sample reportedly contained 13.5 per cent ethanol.
The Karnataka government said it had initially approached the oil companies' in-house laboratories for testing and sought details of the ethanol content in the samples. However, it alleged that the reports did not disclose the required information, prompting the state to send samples for independent testing.
Arshad said the government had received complaints from motorists about declining mileage and frequent vehicle repairs. He warned that excessive ethanol blending could affect even vehicles designed to operate on E20 fuel.
The minister also questioned whether vehicle warranties would cover damage caused by petrol containing ethanol concentrations beyond the prescribed limit.
Karnataka seeks action, compensation for motorists
The state government has demanded strict action against oil marketing companies found supplying petrol with more than 20 per cent ethanol.
It has also sought compensation for consumers whose vehicles may have suffered damage because of excessive blending, along with mandatory disclosure of ethanol percentages at petrol stations across the country.
Among its demands is the establishment of an E20 damage compensation or spoilage fund, with a time-bound claims process for affected motorists. The state has proposed that vehicle damage be certified by authorised service centres before compensation is granted.
Karnataka has also called for different fuel blends to be made available so that consumers can choose according to their vehicle requirements.
The government argued that most vehicles on Indian roads were not designed to operate on ethanol concentrations exceeding 20 per cent. It also raised concerns about fuel-dispensing infrastructure, claiming that most petrol-pump dispensing units were designed to handle blends containing only up to 15 per cent ethanol.
Arshad said the Centre needed to clarify the actual ethanol content in petrol being supplied to consumers and ensure that companies adhered to prescribed standards.
Oil companies reject allegations, question testing methodology
The three state-run oil marketing companies, IOCL, BPCL and HPCL, have strongly disputed the Karnataka government's findings, questioning the sampling and testing procedures used to arrive at the reported ethanol concentrations.
In a joint statement, the companies said the allegations were not supported by tests conducted in accordance with prescribed statutory and technical procedures. They maintained that E20 petrol supplied across their retail networks, including in Karnataka, complied with the Bureau of Indian Standards' IS 17021 specifications for ethanol-blended motor gasoline.
Under the standard, the prescribed ethanol content for E20 petrol is 19-21 per cent.
The companies argued that the samples collected by the Karnataka government were reportedly drawn without the participation of representatives from the oil marketing companies. They also said they had not received the corresponding retained samples, complete outlet-wise details or laboratory reports despite seeking these through the State Level Coordinator.
The OMCs questioned the use of certificates issued by a third-party laboratory, arguing that the reports did not provide sufficient technical details to independently verify the reported ethanol concentrations.
They maintained that the absence of corresponding samples and prescribed documentation had prevented the companies and concerned fuel dealers from seeking independent verification or retesting.
The companies also said that sampling and testing procedures for petrol and diesel were regulated under the Essential Commodities Act and the Marketing Discipline Guidelines.
Citing monitoring conducted by the Centre for High Technology (CHT), an arm of the Petroleum Ministry, the three companies said 893 samples collected from their depots and retail outlets across 27 states and Union Territories had been tested. These included 330 samples from IOCL, 280 from BPCL and 283 from HPCL.
According to the companies, all 893 samples contained ethanol within the prescribed range of 19-21 per cent. They added that all 56 samples tested in Karnataka, covering different locations and all three oil companies, recorded ethanol concentrations between 19 per cent and 20 per cent, with an average of 19.30 per cent.
The OMCs sought complete sampling documentation, outlet-wise laboratory reports and details of the methodology adopted by the Karnataka government. They also proposed joint testing of the retained samples at an authorised laboratory using the prescribed reference method, in the presence of representatives of both sides.
The dispute has therefore developed into a disagreement over not only fuel quality but also the procedures used to establish whether the prescribed blending limits have been violated.
What is E20 petrol and why is it controversial?
E20 is a blend of conventional petrol and 20 per cent ethanol, an alcohol-based biofuel produced primarily from sugarcane and other agricultural feedstocks.
India has pursued ethanol blending for decades, largely to reduce its dependence on imported crude oil. The country relies on foreign suppliers for more than 80 per cent of its crude oil requirements, making alternative fuel sources an important component of its energy security strategy.
The Modi government accelerated the ethanol-blending programme over the past decade, increasing the average blending level from less than 1.5 per cent in the 2013-14 supply year to the targeted 20 per cent in 2025-26, ahead of the original timeline.
However, the transition has raised concerns among motorists, particularly those owning older vehicles that were not designed to run on higher ethanol blends.
Ethanol has different combustion properties from petrol and contains less energy per unit of volume. Consequently, higher ethanol concentrations can affect fuel efficiency and vehicle performance. The government has previously acknowledged that switching to E20 could result in a modest reduction in mileage of around 3-5 per cent, depending on the vehicle.
It has, however, rejected allegations that E20 petrol causes engine damage, maintaining that the programme has been scientifically validated and that concerns about its safety are not supported by conclusive evidence.
Ethanol programme's economic and environmental benefits
Despite the controversy, the Centre has defended the ethanol-blending initiative on economic and environmental grounds.
According to Petroleum Ministry figures cited by the oil marketing companies, the programme since the 2014-15 ethanol supply year has generated foreign exchange savings of more than ₹1.97 lakh crore.
It has also helped substitute approximately 316 lakh metric tonnes of crude oil, reduce carbon dioxide emissions by around 952 lakh metric tonnes and generate payments exceeding ₹1.66 lakh crore for farmers.
The government has consistently argued that increased ethanol production supports domestic agriculture, provides an additional market for sugarcane producers and reduces India's dependence on imported fossil fuels.
However, the Karnataka allegations have brought consumer concerns over fuel quality and vehicle compatibility back into focus, with the state demanding greater transparency and accountability from oil companies.
While the OMCs maintain that their fuel meets the prescribed standards, the Karnataka government has said it will continue testing petrol samples across the state and make its findings public. The Union Petroleum Ministry's response to the latest allegations and the proposed joint testing exercise is now awaited.