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Fear mongering on ethanol-blended petrol baseless, says Oil Ministry

Social media posts also cite June 2021 Niti Aayog report to state that E20/E27 in E10 cars degrades rubber/plastic, corrodes metal, harms fuel systems, cuts mileage and may led to need for part upgrades

August 12, 2025 / 23:07 IST
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In a statement, the ministry listed out the benefits from using E20 (20 per cent ethanol, 80 per cent petrol) and said using such a fuel does not impact the validity of insurance of vehicles in India.
In a statement, the ministry listed out the benefits from using E20 (20 per cent ethanol, 80 per cent petrol) and said using such a fuel does not impact the validity of insurance of vehicles in India.

Amid social media chatter about the impact of 20 per cent ethanol-blended petrol on vehicles, the Oil Ministry on Tuesday stated that concerns over a drastic drop in fuel efficiency are misplaced, adding that the fuel in fact offers improved acceleration.

Doping petrol with 20 per cent ethanol extracted from sugarcane or maize is a national programme aimed at cutting emissions and raising income of farmers, which is being sought to be ”derailed” by some by fomenting fear and confusion, it said. In a statement, the ministry listed out the benefits from using E20 (20 per cent ethanol, 80 per cent petrol) and said using such a fuel does not impact the validity of insurance of vehicles in India.

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"Some seek to derail it by fomenting fear and confusion in the minds of car owners by selectively picking information and creating a false narrative that insurance companies will not cover car damage due to use of E20 fuels. This fear mongering is totally baseless and has been clarified by an insurance company whose tweet screenshot was deliberately misinterpreted to create fear and confusion.

Usage of E20 fuel has no impact on the validity of insurance of vehicles in India,” it said. Over the last few days, there has been a growing chatter on social media about the impact of using E20 on vehicles with some posts saying it leads to at least 7 per cent drop in fuel efficiency. ”The critiques suggesting that E20 causes a ’drastic’ reduction in fuel efficiency are misplaced,” the ministry said. It however did not state the percentage drop in fuel efficiency. On August 4, the ministry had in a post on X said: ”Ethanol, being lower in energy density than petrol, results in a marginal decrease in mileage, estimated at 1-2 per cent for four-wheelers designed for E10 and calibrated for E20, and around 3–6 per cent in others.”