SC Orders Status Quo on Ethanol Supply Allocation for 2025-26
Quick Look
- The Supreme Court ordered a status quo on ethanol supply allocation for 2025-26, challenging a Karnataka HC order that directed oil companies to consider enhancing allocation.
- The AG argued 20% blending is national policy and the HC order could destabilize it.
AI-generated summary
Why It Matters
The Supreme Court ordered a status quo on ethanol supply allocation for the 2025-26 ethanol supply year, overriding a Karnataka High Court directive. This decision stems from arguments that the 20% ethanol-petrol blending is a national policy.
SC Tuesday ordered status quo with regard to ethanol supply allocation for the ethanol supply year 2025-26 after attorney general R Venkataramani argued that 20% blending is a national policy. Abench of Justices M M Sundresh and Sheel Nagu passed the order on a plea of Bharat Petroleum challenging a Karnataka HC order which had directed various oil marketing companies to consider and decide a representation submitted by a distillery seeking enhancement of ethanol allocation for 2025-26. Venkataramani, appearing for BP, submitted that HC order could destabilise the national policy for 20% ethanol-petrol blending. He urged SC to have all matters pertaining to the issue transferred to the court as adjudication of similar petitions were pending in Bombay and Patna HCs. The AG said that ethanol supply contracts were finalised in Oct 2025 itself and several petitions were pending in various HCs. He sought a week’s time to file transfer petitions. The HC had passed the order on the plea of one M/S Vinp Distilleries and Sugar Private Limited, a dedicated ethanol manufacturer, which approached the court challenging reduced allocation of ethanol supply.
Open Questions
- Will the SC transfer all related cases?
- When will final decisions on allocation be made?
