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The Supreme Court on Tuesday (30 June) ordered status quo on the allocation of ethanol for the Ethanol Supply Year (ESY) 2025–26, granting interim relief to Bharat Petroleum Corporation Limited (BPCL).
The Court was hearing BPCL's challenge to a Karnataka High Court order that had directed oil marketing companies to reconsider ethanol allocation in favour of a dedicated ethanol manufacturer.
Background of the Case
The dispute arose after the Karnataka High Court asked BPCL, along with other oil marketing companies, to examine a distillery's request for a higher ethanol allocation for the 2025–26 supply year. The manufacturer argued that despite establishing a dedicated ethanol plant under a long-term agreement, it received a significantly lower allocation than its production capacity.
BPCL contended that the national allocation process had already been completed in October 2025, contracts had been executed, and large quantities of ethanol had already been supplied. It argued that reopening the process could disrupt the Centre's ethanol blending programme (E20), which aims to increase the use of ethanol-blended petrol across the country.
A Bench of Justice MM Sundresh and Justice Sheel Nagu questioned why BPCL had not first approached the Karnataka High Court's Division Bench.
Attorney General R. Venkataramani, appearing for BPCL, submitted that similar disputes were pending before several High Courts and that reopening the completed allocation process could disrupt the Centre's ethanol blending programme.
The Bench observed,
"Issue notice. List on reopening. Till the next date of hearing, there shall be status quo."
Accepting BPCL's request for interim relief, the Supreme Court issued notice to the respondents and directed that the existing position regarding ethanol allocation for ESY 2025–26 be maintained until the next hearing.
Case Details
Case Title: Bharat Petroleum Corporation Ltd. Versus Union of India and Ors.
Case Number: SLP (C) No. 22411/2026
Judge: Justice MM Sundresh and Justice Sheel Nagu
Decision Date: June 30, 2026
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