E20 Petrol: The government has addressed misinformation circulating on social media about E20 petrol, clarifying that claims suggesting E20 petrol could lead to rejected motor insurance claims are unfounded. PIB Fact Check announced that using E20 petrol does not impact motor insurance coverage, ensuring that an insurance claim cannot be denied solely due to using E20 petrol.
The controversy originated from reports implying that insurance claims might face challenges if a vehicle is damaged by E20 petrol, sparking discussions on social media. Concerns, especially among owners of older vehicles, arose regarding potential issues with future claims when using E20 petrol. With E20 petrol now widely available at petrol stations nationwide, consumers are left with limited options besides selecting petrol with lower ethanol content.
ICICI Lombard also clarified that utilizing E20 petrol does not nullify motor insurance policies, reiterating that claim approvals or rejections are based on various factors beyond just the type of fuel used. In light of the clarifications from the government and insurance companies, owners of older vehicles are likely to experience some relief after days of confusion regarding E20 petrol and insurance claims.
The government has emphasized that using E20 petrol does not impact insurance coverage and is concurrently promoting E85 petrol, which contains a higher ethanol concentration than E20. Union Petroleum Minister Hardeep Singh Puri inaugurated E85 fuel at an IndianOil petrol station in New Delhi on June 5, with plans to expand E85 availability to 500 petrol stations by December 2026 and around 5,000 by December 2027, as part of efforts to boost ethanol usage.
Why is the government increasing ethanol?
The government believes that adding more ethanol to petrol will reduce dependence on foreign oil purchases. This will reduce the cost of oil imports and benefit the country. For this reason, after E20, the government is now also promoting fuels with more ethanol like E85.