Ethanol blending is safe and globally accepted; use of E20 won’t invalidate vehicle insurance, says govt

Published 24 June 2026 · finance

Ministry of Petroleum and Natural Gas has reassured vehicle owners that the use of Ethanol Blended Petrol (EBP) will not make their insurance claims invalid

Ministry of Petroleum and Natural Gas has reassured vehicle owners that the use of Ethanol Blended Petrol (EBP) will not make their insurance claims invalid. "Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan," the ministry said in an official release. Ethanol Blended Petrol is not sugarcane juice The Petroleum Ministry also cautioned against other misleading claims on social media, including sugarcane juice as being mixed directly with petrol. “Such content is misleading and baseless. Ethanol used for fuel blending is produced through established industrial processes and conforms to stringent quality specifications before blending with petrol,” it said.

“Ethanol is made from a variety of feedstocks, such as sugarcane juice, molasses, broken rice and maize, but the properties of ethanol are vastly different from the input feed stock as it has undergone a series of processes, including fermentation, which leads to fermentation of the sugars present in the feedstocks,” it added. No sugar in EBP Regarding a recent viral video showing ants near a vehicle fuel tank, the ministry said Bharat Petroleum Corporation Limited (BPCL) clarified that fuel-grade ethanol used for petrol blending is produced through fermentation and distillation processes that eliminate residual sugars from the final product. “Fuel ethanol contains denaturants that are repellent to insects.

There is no identifiable attractant associated with E20 fuel that would cause ants or other insects to congregate around vehicle fuel caps. Therefore, claims suggesting a link between E20 fuel and ant attraction have no scientific basis and are not supported by scientific evidence,” it explained. No widespread issues of engine failure On claims that E20 petrol is affecting vehicle performance and engine failure, the ministry said the government continuously monitors the implementation in consultation with oil marketing companies, automobile manufacturers, fuel testing agencies and other stakeholders. “Since the introduction of E20 petrol, no widespread issues of engine failure or vehicle breakdown attributable to ethanol blending have been reported,” it said.

“It is common knowledge that the entry of water into the fuel tank is undesirable for any fuel, whether ethanol blended or otherwise. Modern vehicles are equipped with design features and safeguards to prevent water entry into fuel tanks,” the ministry said. EBP saved ₹ 1.4 lakh crore The Petroleum Ministry also said that the Ethanol Blending Programme has helped save the country over ₹1.4 lakh crore in foreign exchange through reduced crude oil imports. The programme has also created sustained demand for agricultural feedstocks used in ethanol production, thereby supporting farmers' incomes and strengthening the rural economy.