Govt Says E20 Fuel Safe, Will Not Affect Vehicle Insurance Validity

By Mahima Katal

New Delhi, June 24: The Centre on Wednesday reiterated that India's ethanol blending programme is safe, consumer-friendly, and economically beneficial, dismissing concerns that the use of E20 fuel could invalidate vehicle insurance policies.

In a statement, the Ministry of Petroleum and Natural Gas clarified that claims linking E20 fuel usage with insurance policy invalidation had been examined in consultation with relevant stakeholders and were found to be incorrect.

The ministry noted that ethanol blending is a globally accepted practice and is widely implemented in countries such as the United States, Brazil, and Japan. It highlighted that Brazil has successfully adopted even higher blending levels, with E27 serving as the country's standard petrol blend.

According to the government, the ethanol blending programme has helped India save over ₹1.4 lakh crore in foreign exchange by reducing dependence on crude oil imports. The initiative has also generated sustained demand for agricultural feedstocks used in ethanol production, thereby supporting farmers' incomes and strengthening the rural economy.

The government further stated that ethanol blending contributes significantly to enhancing India's energy security, lowering carbon emissions, and accelerating the country's transition towards cleaner mobility solutions.

Reaffirming its commitment to the programme, the ministry said ethanol blending would continue to be implemented in a safe, transparent, and consumer-centric manner, guided by scientific evidence and continuous stakeholder engagement.