E20 fuel safe for vehicles, insurance remains valid: Govt

India’s ethanol blending programme remains safe, consumer-friendly and economically beneficial, the government said, rejecting concerns that the use of E20 fuel could affect the validity of vehicle insurance policies.

In a statement, the oil ministry said claims linking the use of E20 fuel to insurance invalidation had been discussed with relevant stakeholders and were found to be incorrect.

“Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan,” it said.

The ministry noted that Brazil has long adopted higher ethanol blending levels, with E27 serving as the country’s standard petrol blend.

According to the government, the ethanol blending programme has helped India save more than $1.4 lakh crore in foreign exchange by reducing crude oil imports. It added that the initiative has created sustained demand for agricultural feedstocks used in ethanol production, supporting farmers’ incomes and strengthening the rural economy.

“Ethanol blending plays an important role in enhancing India’s energy security, reducing carbon emissions and advancing the country’s transition towards cleaner mobility,” the statement said.

The government said it remains committed to implementing the programme “in a safe, transparent and consumer-centric manner, guided by scientific evidence and continuous stakeholder engagement.”