Ethanol-Blended Fuel Safe, Mileage Drop Minimal; No Impact on Insurance Coverage: Hardeep Singh Puri

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New Delhi, July 2: Union Petroleum and Natural Gas Minister Hardeep Singh Puri has dismissed concerns surrounding ethanol-blended fuel, asserting that the government’s ethanol blending programme is backed by extensive scientific testing and consultations with industry stakeholders.

Addressing a press conference in New Delhi, the Minister responded to claims that ethanol-blended fuel significantly reduces vehicle mileage and could affect insurance coverage.

Referring to concerns over fuel efficiency, Puri said ethanol is already widely used in high-performance racing cars and has demonstrated several performance benefits.

“Somebody is saying that fuel mileage is going to drop. It is now well established that ethanol is even used in racing cars. Acceleration improves. Knocking also improves. Mileage may drop a little, but any reduction is marginal and can occur due to various factors,” he said.

The Minister stressed that the government reached the current 20 per cent ethanol blending level only after extensive consultations with key stakeholders, including the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Research Association of India (ARAI).

Responding to reports suggesting that insurance claims could be affected by the use of ethanol-blended fuel, Puri said insurance companies have already clarified that there is no such issue.

He questioned the motive behind what he described as the spread of misinformation but refrained from attributing responsibility to any individual or organisation.

“I am not going to make any accusations, but one thing should be very clear. There is enough space in India’s growing consumer market for all technologies to coexist,” the Minister said.

Puri emphasised that India’s clean mobility strategy is technology-neutral and supports multiple fuel and vehicle technologies simultaneously. He said there is sufficient scope for electric vehicles (EVs), biofuel-powered vehicles, hybrid vehicles and CNG vehicles to grow together in the Indian market.

He further clarified that any future decision to increase ethanol blending from 20 per cent to 25 per cent would be taken only after all required technical evaluations and testing are completed.

The Union Minister reiterated that the government’s ethanol blending programme is aimed at reducing dependence on imported fossil fuels, promoting cleaner energy, supporting farmers and strengthening India’s energy security, while ensuring that all policy decisions are based on scientific validation and stakeholder consultation.

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