E20 Petrol Under Scanner as Report Raises Engine Damage Concerns; SIAM and Government Respond

New Delhi | August 5, 2026 A fresh controversy has erupted over E20 petrol, with a media report claiming that a document linked to the Society of Indian Automobile Manufacturers (SIAM) warned the government about potential engine and exhaust system damage caused by poor fuel quality. The claims have reignited concerns over ethanol-blended fuel, even as both SIAM and the government insist that strict quality control measures are in place.

According to the report, SIAM had written to the Ministry of Petroleum and Natural Gas (MoPNG) expressing concerns that excessive chloride contamination and high moisture levels in some E20 fuel samples could accelerate corrosion and wear in critical vehicle components, including fuel injectors, fuel pumps, exhaust gas recirculation (EGR) valves, exhaust systems, and engine parts.

The report alleged that chloride levels of up to 500 mg/kg were detected in samples taken from vehicle fuel tanks, while some petrol pump samples reportedly contained up to 350 mg/kg. SIAM was also said to have recommended that the Bureau of Indian Standards (BIS) introduce a mandatory chloride limit of less than 1 mg/kg for E20 and E85 fuels.

Moisture content was also highlighted as a concern. Some samples reportedly exceeded 10,000 mg/kg, significantly above the prescribed limit of 3,000 mg/kg. Since ethanol naturally absorbs moisture from the atmosphere, excessive water contamination can lead to fuel separation, potentially causing engine stalling and other mechanical issues.

The report further suggested that ageing underground storage tanks and pipelines at older petrol pumps could be contributing to contamination and recommended regular audits of fuel storage infrastructure.

Responding to the controversy, the Ministry of Petroleum and Natural Gas said oil marketing companies conduct regular fuel quality testing across the country. In addition to existing testing systems, more than 87,000 petrol pumps now check for water contamination 8 to 12 times a day. The ministry stated that out of more than 2,000 fuel samples tested nationwide, chloride contamination was detected in only two cases, and fuel sales at those outlets were immediately suspended.

SIAM also issued a clarification, stating that the figures mentioned in the reported document should not be treated as final or conclusive. The automobile industry body said there is no immediate cause for concern among vehicle owners and emphasized that fuel quality is monitored under strict regulatory standards.

SIAM added that oil marketing companies already test fuel against more than 150 quality parameters and noted that the government has implemented a 3 ppm limit for chloride and sulphur in ethanol used for fuel blending as a precautionary measure.

The issue has gained political attention as opposition to E20 fuel continues to grow. Former Delhi Chief Minister Arvind Kejriwal recently led a protest march over the policy, while some transport unions and public figures have also raised concerns about the widespread adoption of ethanol-blended petrol.

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