Supreme Court Questions Centre on Fuel Supply

The Supreme Court has questioned the Centre on how it plans to ensure an adequate fuel supply if vehicles running entirely on ethanol are permitted. The observations come after the government recently allowed the use of 100% ethanol (E100) in flex-fuel vehicles, while Union Minister Hardeep Singh Puri stated that there are no plans to increase the ethanol blend in petrol beyond the existing 20%. A bench comprising Justice M. M. Sundresh and Justice Prasanna B. Varale was hearing petitions related to ethanol allocations for the 2025–26 Ethanol Supply Year (ESY). During the proceedings, the bench referred to reports about vehicles running entirely on ethanol and raised questions about the availability and supply of the fuel required to operate them. Attorney General R. Venkataramani responded that implementing such a system would require extensive changes to manufacturing infrastructure.

The Supreme Court bench observed that the issue needed to be examined from the perspective of public interest, environmental protection and the benefits to farmers. Lawyers appearing in the case submitted that promoting ethanol could benefit farmers and that their interests had also been considered under the Centre’s policy. The proceedings have highlighted questions surrounding ethanol production capacity, fuel distribution and the infrastructure needed to support vehicles that run entirely on ethanol. The court stressed the importance of considering the broader implications of the policy before proceeding further. After hearing the arguments, the bench adjourned the matter to next month.