Basics of the Case
- Petition: Filed challenging nationwide roll-out of E20 fuel (20% ethanol-blended petrol).
- Claim:
- Violates rights of vehicle owners whose cars are incompatible with E20.
- No option left for ethanol-free petrol (older blends like E5, E10 phased out).
- Risks mechanical damage, insurance denial, and reduced efficiency.
- Petitioner’s Demand:
- Continue availability of ethanol-free petrol for vehicles manufactured before April 2023.
- Mandate clear ethanol labelling at all fuel stations.
- Conduct nationwide impact study on non-compatible vehicles.
Relevance: GS III (Environment – Clean Energy Transition, Climate Mitigation) + GS III (Agriculture – Farmer Income, Biofuel Policy) + GS III (Economy – Energy Security, Consumer Rights)
Supreme Court’s Decision
- Bench: CJI B.R. Gavai & Justice K. Vinod Chandran.
- Dismissed Petition: Refused to interfere in government’s clean fuel policy.
- Reasoning:
- Policy linked to farmers’ income, energy security, and forex savings.
- Court unwilling to obstruct India’s clean fuel transition.
- AG R. Venkataramani suggested petition reflected vested interests against blending.
Government’s Stand
- Benefits of E20:
- Boosts sugarcane farmers’ income.
- Reduces oil imports (India imports ~85% of crude).
- Cuts carbon emissions.
- Ministry of Petroleum claimed: better acceleration, improved ride quality.
- Insurance Validity: Clarified that policies remain valid for vehicles using E20.
- Implementation: E20 being gradually rolled out since 2023, replacing E5/E10.
Issues Raised by Petitioners
- Efficiency Loss:
- NITI Aayog’s 2021 report: E20 could cut fuel efficiency by 6–7% in 4-wheelers and 3–4% in 2-wheelers.
- Vehicle Damage: Non-compatible engines may suffer corrosion, deposit buildup, or faster wear.
- Consumer Rights:
- Lack of choice (no ethanol-free petrol).
- Breach of right to informed choice under Consumer Protection Act, 2019 (absence of proper labelling).
- Liability Gaps:
- Vehicle manufacturers & insurers won’t cover damage caused by E20 use in non-compatible vehicles.
Broader Context
- India’s Ethanol Blending Policy:
- E20 target by 2025-26 (advanced from 2030).
- Part of National Biofuel Policy, 2018.
- Current status (2024-25): E20 rollout in progress; E10 nearly universal.
- Global Practices:
- U.S., Brazil widely use higher ethanol blends (E20–E85).
- Requires compatible flex-fuel vehicles.
- Economic Linkages:
- Supports sugar sector by diverting surplus cane to ethanol.
- Helps stabilise sugar prices and ensure rural incomes.
Challenges & Risks
- Technical:
- Older vehicles not compatible → mechanical degradation.
- Mileage reduction → higher consumer costs.
- Agricultural:
- Over-reliance on sugarcane (water-intensive crop).
- Risk of food vs fuel debate if more land shifts to ethanol crops.
- Environmental:
- While ethanol cuts tailpipe emissions, cane cultivation strains water resources.
- Consumer Protection: Lack of awareness, limited choices at pumps.
Analysis of SC Verdict
- Positive:
- Reinforces India’s clean energy & self-reliance transition.
- Judicial deference to policy choices on energy & climate.
- Concerns Ignored:
- Consumer choice & compensation for vehicle damage.
- Adequacy of public consultation & awareness campaigns.
- Balance between farmers’ welfare vs consumer rights.
Way Forward
- Technical Solutions:
- Gradual phase-out of old vehicles, retrofit options for compatibility.
- Mandatory labelling of ethanol content at pumps.
- Policy Safeguards:
- Transitional period: Ensure parallel supply of ethanol-free petrol.
- Consumer compensation framework for engine damage.
- Agricultural Diversification:
- Encourage second-generation biofuels (crop residues, waste, maize, sorghum).
- Reduce sole dependence on sugarcane ethanol.
- Public Awareness: Campaigns on efficiency changes, safety, and insurance coverage.
