New Delhi: The Government on Wednesday rejected claims that using E20 fuel could invalidate vehicle insurance, saying India’s ethanol blending programme is safe, consumer-friendly and has delivered major economic benefits, including over Rs 1.4 lakh crore in foreign-exchange savings. MoPNG said claims linking E20 use to insurance invalidation had been clarified with relevant stakeholders and were found to be incorrect. In an official statement, the ministry reiterated that “ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan.”
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The statement pointed to Brazil’s long-standing use of higher ethanol blends, noting that “E27” serves as the country’s standard petrol blend. The ministry also highlighted the programme’s financial impact, saying ethanol blending has helped India save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports.
Officials said the scheme has created sustained demand for agricultural feedstocks used in ethanol production, supporting farmers’ incomes and strengthening the rural economy. The ministry added that “ethanol blending plays an important role in enhancing India’s energy security, reducing carbon emissions and advancing the country's transition towards cleaner mobility.”
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Reiterating implementation priorities, the government said it remains committed to rolling out the programme “in a safe, transparent and consumer-centric manner, guided by scientific evidence and continuous stakeholder engagement.”
The ministry’s comments come amid public concerns and media reports suggesting insurers might deny claims for vehicles using higher ethanol blends. The statement did not name specific insurers or include new technical guidance for vehicle owners, but said the matter had been clarified with relevant stakeholders.
Observers say continued engagement between the government, automakers, fuel retailers and insurers will be crucial as higher blends are adopted more widely, to ensure consumers have clear information on vehicle compatibility and maintenance requirements.
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