India’s Oil Minister Hardeep Singh Puri Ji has reassured vehicle owners that E20 Fuel – Petrol blended with 20% ethanol is completely safe for use in vehicles and does not affect insurance claims. Let us deep dive into E20 fuel.

What is E20 Fuel: E20 Fuel in India is a blended fuel composed of 20% ethanol and 80% gasoline (petrol) .

What is the objective of E20 Fuel in India: This initiative aims to reduce import dependence, Promote green energy and support farmers.

What are the benefits of E20 Fuel :

1.Ethanol blending helps substitute crude oil imports, reduce dependency on global oil markets. India saved Rs.1.44 Lakh crore in foreign exchange between 2014 and 2025.

2. E20 use leads to lower greenhouse gas emissions. Infact, Blending has already reduced 73.6 million tonnes of CO2 emissions – equivalent to planting 30 crores tress.

3. Ethanol is primarly produced from sugar cane, Maize and agricultural residues. Better realisation and steady demand to farming sector.

What are the Limitations of E20 Fuel

1. While newer vehicles are E20-compliant, older vehicls may face compatibility issues like reduced fuel efficiency since fuels systems like seals, hoses and engines not designed for higher ethanol blends

2. Some studies suggest that higher ethanol blends cause cold-start problems, particularly in two wheelers and small vehicles in colder regions though manufacturers are working on technical solutions

3. Sustainable ethanol production and robust infrastructure are key to make this transition smooth and truly beneficial.