Ministry says ethanol blended petrol does not affect insurance claims or vehicle coverage validity
Government rejects claims of sugarcane juice mixing directly with petrol, calls them misleading and false
Ethanol produced from crops undergoes industrial processing and fermentation before being blended with petrol fuel
The Ministry of Petroleum and Natural Gas has clarified that Ethanol Blended Petrol (EBP) will not impact vehicle insurance claims. It said ethanol blending is a widely accepted global practice and is already in use in countries including the United States, Brazil and Japan.
The ministry also rejected claims circulating on social media that sugarcane juice is directly mixed with petrol. It said ethanol used in fuel is produced through regulated industrial processes and meets strict quality standards before blending with petrol.
Officials explained that ethanol comes from sources such as sugarcane juice, molasses, broken rice and maize, but goes through multiple processing stages, including fermentation, which changes its final form and properties.
1 June 2026
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Fuel Safety Clarified
The ministry dismissed viral posts suggesting E20 fuel attracts ants near fuel tanks. It said fuel-grade ethanol contains additives that deter insects and there is no scientific basis for such claims.
It also addressed concerns about engine performance, saying there are no widespread reports of engine failure linked to ethanol blending since E20 petrol was introduced. The government said it continues to monitor implementation with oil companies, vehicle makers and testing agencies.
Officials added that modern vehicles are designed to handle fuel systems safely, including protection against issues like water contamination.
Economic and Energy Gains
The ministry said the programme has helped India save over ₹1.4 lakh crore in foreign exchange by reducing crude oil imports. It added that the programme has created steady demand for farm produce used in ethanol production, supporting rural incomes.
It said ethanol blending supports cleaner energy use, reduces emissions and strengthens India’s energy security. The government reiterated that the programme is being implemented in a safe and science-based manner.
