Supreme Court Directs Status Quo On Ethanol Supply Allocation

The Supreme Court on Tuesday directed that the status quo be maintained on ethanol supply allocation for 2025-26 while hearing Bharat Petroleum Corporation Limited (BPCL)'s appeal against a Karnataka High Court order.A vacation bench also issued notices to the Union government and 23 distilleries on BPCL's appeal challenging the high court's directions.Attorney General R Venkataramani, appearing for the Centre and Bharat Petroleum Corporation Limited (BPCL), argued that the Karnataka High Court's order, which directed Oil Marketing Companies (OMCs) to consider representations from distilleries seeking enhanced ethanol allocation for 2025-26, could disrupt the Centre's nationwide ethanol blending policy.Responding to the bench's query on why the high court's division bench had not been approached, the attorney general said ethanol supply contracts had already been finalised in October 2025 and that similar petitions were pending before various high courts.He also informed the court that the Centre would be filing appropriate transfer petitions to ensure uniform adjudication of the issue.The bench, comprising Justice MM Sundresh and Justice Sheel Nagu, issued notice to dedicated ethanol plants which had earlier procured a favourable order from the high court for enforcement of an agreement granting them rights to supply ethanol to oil marketing companies."Issue notice. List on reopening. Till the next date of hearing, there shall be status quo," the bench ordered.