New Delhi: The Union Ministry of Petroleum and Natural Gas has clarified that the use of 20% ethanol-blended petrol, known as E20, will not affect vehicle insurance claims.
The ministry said doubts are periodically raised on social media about the ethanol blending programme, including claims that insurers may reject claims if a vehicle develops a fault after using ethanol-blended fuel. It stated that such reports are not true.
According to the ministry, ethanol blending is a globally accepted practice and is being implemented successfully in countries such as the United States, Brazil and Japan. It noted that Brazil supplies petrol blended with 27% ethanol, while India is currently at 20%.
The ministry added that a review was carried out with relevant stakeholders, who confirmed that the circulating claims lack factual basis. It also said the programme has reduced India’s dependence on crude oil imports, saving more than Rs 1.4 lakh crore in foreign exchange.
It further said the initiative has created steady demand for agricultural feedstocks used in ethanol production, benefiting farmers and the rural economy. The programme will continue based on scientific evidence and expert inputs, with consumer welfare as the focus.
