Supreme Court Orders Status Quo On Ethanol Allocation In BPCL Plea

The Supreme Court on Tuesday issued notices to all concerned parties on a petition filed by Bharat Petroleum Corporation Limited (BPCL) challenging the Karnataka High Court’s order directing the reopening of ethanol allocation for the 2025–26 supply year.

The apex court also directed all parties to maintain status quo until the next hearing, providing temporary relief while it considers the matter.

During the hearing, the Attorney General argued that reopening the ethanol allocation process at this stage could disrupt the Centre’s ambitious 20 per cent ethanol blending programme, a key initiative aimed at reducing India’s dependence on imported fossil fuels, lowering carbon emissions and promoting cleaner energy alternatives. He cautioned that revisiting the allocation process could affect the timely implementation of the national policy.

The Bench, headed by Justice MM Sundresh, questioned BPCL over its decision to approach the Supreme Court directly instead of first challenging the Single Judge’s order before the Division Bench of the Karnataka High Court.

The court sought an explanation for bypassing the established judicial process.

The dispute arises from a Karnataka High Court order directing authorities to reopen ethanol allocation for the 2025–26 supply year.

BPCL has challenged the decision, arguing that altering allocations at this stage could create uncertainty in procurement and hinder the execution of the government’s ethanol blending programme.

After hearing the preliminary submissions, the Supreme Court issued notices to the respondents and directed all parties to maintain the existing arrangement until the next hearing.

The court’s eventual ruling could significantly impact ethanol procurement, fuel supply planning and the Centre’s target of achieving 20 per cent ethanol blending in petrol.

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