The government's recent push for the adoption of higher ethanol blended fuel has sparked multiple debates among both existing vehicle owners and new consumers. One of the confusion that many car owners are discussion most is whether they lose insurance validity upon using E20 fuel. Clearing the air around all the speculations and confusions, the government dismissed concerns that the use of E20 fuel could affect the validity of vehicle insurance policies, saying the ethanol blending programme remains safe, consumer-friendly, and economically beneficial, the government said, dismissing.
The Oil Ministry said in a statement that claims linking insurance invalidity to the use of E-20 fuel have been cleared with the concerned stakeholders and found to be false.
"Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan," it said.
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Ethanol Blending Helps To Save Rs 1.4 Lakh Crore
It noted that Brazil has long adopted higher ethanol blending levels, with E27 serving as the country's standard petrol blend.
The government stated that the ethanol blending program has helped India save more than ₹1.4 lakh crore in foreign exchange by reducing crude oil imports. Furthermore, the program has generated sustained demand for agri-food products used in ethanol production, supporting farmer 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."
(With Inputs From PTI)