India Defends Ethanol Blending Program Against Insurance and Safety Claims

The Government of India dismissed claims that the use of E20 ethanol-blended fuel invalidates motor insurance policies or causes vehicle damage. The Ministry of Petroleum and Natural Gas stated that these concerns were unfounded and resolved following consultations with relevant stakeholders.

These clarifications follow the spread of social media misinformation, including videos falsely claiming sugarcane juice is mixed directly into petrol and reports of ants congregating around fuel tanks. The Ministry and Bharat Petroleum Corporation Limited clarified that fuel-grade ethanol undergoes industrial fermentation and distillation to remove sugars and includes insect-repellent denaturants. Officials further noted that no widespread engine failures have been attributed to E20 petrol since its 2023 rollout.

The government highlighted that ethanol blending is a globally accepted practice used in the United States, Japan, and Brazil, where E27 is the standard blend. Launched in 2003 to reduce crude oil imports, the program has saved India over Rs 1.4 lakh crore in foreign exchange and increased rural agricultural incomes by creating demand for feedstocks. The initiative remains a core part of India's strategy to enhance energy security and reduce carbon emissions.