E20 Fuel Will Not Affect Insurance: Government
The government has said India’s ethanol blending programme remains safe, consumer-friendly and economically beneficial, dismissing concerns that the use of E20 petrol could affect the validity of vehicle insurance policies.
E20 Fuel Will Not Affect Insurance
The Petroleum Ministry said claims linking the use of E20 fuel with vehicle insurance invalidation are incorrect. It said the issue had been clarified with relevant stakeholders and there was no basis to suggest that motor insurance policies would become invalid due to the use of ethanol-blended petrol.
The clarification comes after concerns circulated among vehicle owners over whether using petrol blended with 20% ethanol could affect insurance coverage. The government said the ethanol blending programme is being implemented in a safe and transparent manner.
Ethanol Blending Programme Called Safe
The government said ethanol blending is a globally accepted practice and is already used in several countries, including the United States, Brazil and Japan. It noted that Brazil uses even higher ethanol blending levels, with E27 serving as the standard petrol blend.
Officials said India’s programme is guided by scientific evidence, stakeholder consultation and consumer interest. The ministry added that ethanol-blended fuel supports cleaner mobility while reducing dependence on imported crude oil.
India Sees Economic And Environmental Benefits
The government said the ethanol blending programme has helped India save more than ₹1.4 lakh crore in foreign exchange by cutting crude oil imports. It has also created steady demand for agricultural feedstocks used in ethanol production, supporting farmers and the rural economy.
The ministry said ethanol blending strengthens India’s energy security, reduces carbon emissions and supports the transition to cleaner transport fuels. It added that the programme will continue with a focus on safety, transparency and consumer confidence.
