Union Oil Minister Hardeep Singh Puri

Emphasising that E20 fuel is “safe” for vehicles, Oil Minister Hardeep Singh Puri said that if insurance companies deny claims on vehicles due to the use of ethanol-blended petrol, the vehicle owner should approach the government.

The issue relates to public concerns over denial of insurance claims on vehicle damage due to the use of petrol blended with 20 per cent ethanol.

“Please come to us,” the Minister assured, responding to a question on what happens to insurance claims related to E20 fuel at the annual summit of Public Affairs Forum of India (PAFI).

Besides, the government has on various occasions reiterated that using E20 fuel has no impact on vehicle insurance. 

Last month, oil marketing companies (OMCs), automakers and Automotive Research Association of India (ARAI) in a joint media briefing, denounced the negative campaign, largely on social media, on the E20 fuel. They emphasised that the fuel is “safe” and the concerns being raised is “all misinformation, misunderstanding and hearsay”.

Ethanol-blended petrol has also aided in reducing the fuel import bill. The government pointed out that during the last 11 years from Ethanol Supply Year (ESY) 2014-15 to ESY 2024-25 up to July 2025, ethanol blending in petrol by PSU Oil Marketing Companies (OMCs) resulted in savings of more than ₹1.44 lakh crore of foreign exchange, crude oil substitution of about 24.5 million tonnes (mt) and CO2 emission reduction of around 73.6 mt—equivalent of planting 30 crore trees.

Fuel supply

Addressing the PAFI forum, Puri assured the gathering that there is no energy shortage or cost escalation despite global uncertainty.

He attributed the growth in oil and gas imports to India’s expanding energy demand, which is growing at three times the global average.

The Minister also articulated India’s oil and gas diversification efforts, emphasis on the increase in sourcing destinations to 40 countries from the earlier 27.

Puri termed green hydrogen as the “fuel of the future” with the potential to reduce imports, which will aid in cutting down India’s energy import bill.

Published on September 18, 2025