India says E20 ethanol petrol is safe, won’t void insurance claims
India said E20 petrol would not void insurance claims and pointed to ARAI testing over more than 1 lakh km with no engine failures.
India’s Ministry of Petroleum and Natural Gas on August 4, 2025, said E20 petrol was safe and would not void insurance claims. The ministry moved to counter concerns that 20% ethanol-blended petrol could cut mileage, hurt older engines or leave motorists exposed when filing claims.
The National Policy on Biofuels, 2018, as amended in 2022, advanced the 20% blending target from 2030 to Ethanol Supply Year 2025-26. Public Sector Oil Marketing Companies reached 10% ethanol blending in June 2022, five months ahead of schedule, and Petroleum and Natural Gas Minister Hardeep Singh Puri said India achieved E20 in 2025, five years ahead of the original target.
Tests from the Automotive Research Association of India, the Indian Institute of Petroleum and Indian Oil’s research and development arm covered older vehicles for more than 1 lakh km, found no engine failures and reported only a minor mileage drop. “E20 is safe for use in any vehicle plying on Indian roads,” said Reji Mathai, chief of the Automotive Research Association of India.
E20 is already used in the United States, Brazil and Japan. E20 use alone should not be grounds for rejecting a claim.
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