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Home » Ethanol blending programme safe, E20 fuel won’t affect insurance of vehicles: Government | Markets

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Ethanol blending programme safe, E20 fuel won’t affect insurance of vehicles: Government | Markets

Times Desk
Last updated: June 24, 2026 11:56 am
Times Desk
Published: June 24, 2026
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New Delhi:

India’s ethanol blending programme remains safe, consumer-friendly, and economically beneficial, the Ministry of Petroleum and Natural Gas said, dismissing concerns that the use of ethanol-blended petrol (EBP), including E20 fuel, could affect the validity of vehicle insurance policies. The ministry said claims linking E20 fuel use to insurance invalidation had been clarified with relevant stakeholders and were found to be incorrect. The statement comes amid growing concerns and misinformation circulating on social media regarding the impact of ethanol-blended fuels on vehicle performance and safety.

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

Brazil has adopted higher ethanol blending levels

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

The government said the ethanol blending programme has helped India save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports. It added that the programme 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.

Govt has mandated the sale of petrol with up to 20%  ethanol

The government has mandated the sale of petrol with up to 20 per cent ethanol and a minimum Research Octane Number (RON) of 95 across all states and Union Territories from April 1, 2026. The insistence on minimum RON 95 is to prevent engine damage. RON, or Research Octane Number, is a measure of a fuel’s resistance to engine knocking (pre-ignition). Knocking occurs when fuel burns unevenly in the engine, causing a pinging sound, loss of power, and possible engine damage over time.

Ethanol naturally has a high octane value (around 108 RON). Blending 20 per cent ethanol in petrol increases knock resistance.

Ethanol is made from sugarcane, maize, or grain. It is renewable, domestically produced and has cleaner burning than pure petrol.

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