Government rejects claim that E20 fuel affects vehicle insurance

The government has dismissed social media claims that using E20 fuel could lead to rejection of vehicle insurance claims. PIB Fact Check clarified that motor insurance policies remain valid, while urging the public to verify information through official sources before sharing it

New Delhi: The government on Tuesday debunked claims circulating on social media that the use of E20 fuel could lead to the rejection of vehicle insurance claims.

In a post on X, the PIB Fact Check unit termed the claim fake and clarified that motor insurance policies remain valid for vehicles using E20 fuel.

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The clarification came amid social media posts suggesting that motorists could face difficulties in securing insurance coverage or claim settlements if they used E20 fuel.

Rejecting the claim, the PIB said there is no impact on the validity of motor insurance policies due to the use of E20 fuel.

Moreover, the fact-checking unit urged people to verify such information through official sources before sharing or acting upon it.

In addition, it appealed to the public to help curb the spread of misinformation by reporting suspicious or misleading content.

Separately, a recent report by KPMG in India highlighted that the country’s ethanol blending programme has achieved significant scale, with E20 fuel now operationalised nationwide.

The report examined opportunities and challenges as the sector moves beyond E20, including issues related to feedstock availability, supply chain efficiency, infrastructure readiness and policy alignment.

The government has been promoting the use of ethanol-blended petrol as part of its broader strategy to reduce dependence on imported crude oil, enhance energy security and support environmental sustainability.

Earlier in June, the government launched E85 fuel on World Environment Day 2026 at an IndianOil retail outlet, marking the first phase of a wider rollout programme.

E85 fuel is currently available at 48 retail outlets operated by public sector oil marketing companies.

The government plans to expand availability to 500 outlets by December 2026 and to around 5,000 outlets by December 2027.