Bengaluru, Nov. 6 -- Karnataka has opened a fresh front against the Centre's ethanol-blending policy, alleging that petrol supplied by major oil marketing companies contains ethanol well beyond the prescribed 20 per cent limit and demanding compensation for motorists who may be bearing the cost through reduced mileage and higher vehicle maintenance expenses.

Escalating the issue beyond fuel quality concerns, the state government has demanded the creation of an "E20 spoilage fund", arguing that consumers should not be made to pay for alleged violations of prescribed fuel standards.

Food and Civil Supplies Minister Rizwan Arshad said tests conducted on 63 petrol samples collected from seven districts, including Bengaluru Urban, had revealed...