Govt clarifies E20 fuel use has no impact on validity of vehicles' insurance
This story was originally published at 18:39 IST on 12 August 2025
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--Govt: E20 fuel use doesn't impact validity of vehicle insurance
--Govt: Some old vehicle parts may need replacement due to ethanol-blend fuel
--Govt: Most auto parameters face no issues due to ethanol petrol blending
MUMBAI – The Ministry of Petroleum and Natural gas said Tuesday that the usage of E20 fuel has no impact on the validity of the insurance of vehicles in India. The clarification comes after a large insurance aggregator stated that insurance claims may be rejected if a vehicle breakdown occurs in an E10-compliant vehicle using E20 blended fuel.
The ministry said that ethanol blending is a national programme and "some seek to derail it by fomenting fear and confusion in the minds of car owners by selectively picking information and creating a false narrative that insurance companies will not cover car damage due to the use of E20 fuels."
The use of E20 fuel provides better acceleration, better ride quality, and lowers carbon emissions by around 30% as compared to E10 fuel. The government also said that the critiques suggesting that E20 fuel causes a drastic reduction in fuel efficiency are "misplaced". "For some manufacturers, vehicles have been E20 compatible from as far back as 2009. The question of any drop in fuel efficiency in such vehicles does not arise," it added.
The ministry said that there is no issue of ethanol blending in most parameters, including drivability, startability, metal compatibility, and plastic compatibility. However, in certain old vehicles, some rubber parts and gaskets may require replacement if non-blended fuel was used earlier. "This replacement is inexpensive and can be easily managed during routine servicing. It may need to be done once in the lifetime of a vehicle and is a simple process to be carried out at any authorised workshop," it added.
According to a study on lifecycle emissions of ethanol done by NITI Aayog, the greenhouse gas emissions in case of use of sugarcane- and maize-based ethanol are lower than those of petrol by 65% and 50%, respectively, it said. End
Reported by Ashutosh Pati
Edited by Deepshikha Bhardwaj
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