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SIAM Flags E20 Fuel Quality Issues; Centre Says Contamination Cases Are ‘Extremely Rare’

The Ministry of Petroleum and Natural Gas (MoPNG) on Tuesday issued a clarification after reports claimed that the Society of Indian Automobile Manufacturers (SIAM) had raised concerns over the quality of E20 petrol and its impact on vehicle components.

The clarification came after a media report, and subsequent reports citing it, claimed SIAM had warned the government about contamination in E20 petrol. The report was later withdrawn on Tuesday.

Government Says Fuel Quality Is Regularly Monitored

Responding to reports of fuel contamination, the ministry said oil marketing companies (OMCs) routinely monitor fuel quality and have strengthened testing protocols across the country.

“Certain media reports have cited issues of fuel adulteration or contamination. It is hereby clarified that fuel quality is monitored on a regular basis by Oil Marketing Companies. In addition to the advanced and elaborate testing protocols already in place, further checks have been instituted, including water ingress testing 8–12 times a day in over 87,000 outlets,” the ministry said.

The ministry added that more than 2,000 fuel samples had been tested for chloride and sulphide contamination.

“Sales from those pumps were suspended immediately. Strict action will be taken in case any contamination or adulteration is found in any retail outlet,” it said, adding that only two cases of chloride contamination had been detected nationwide so far.

According to the ministry, OMCs have also been directed to proactively identify possible contamination across the entire fuel supply chain.

What The SIAM Report Claimed

According to a now-deleted CNBC-TV18 report, SIAM wrote to the Union Ministry of Petroleum and Natural Gas expressing concerns over deteriorating fuel quality following the nationwide rollout of E20 petrol, a blend of 20% ethanol and 80% petrol.

The report said SIAM, a non-profit body representing major automobile and engine manufacturers in India, warned that high chloride contamination and excessive moisture in ethanol-blended petrol were causing a “huge increase” in the replacement of fuel injectors, fuel pumps, exhaust gas recirculation (EGR) valves, exhaust components and other parts exposed to fuel or engine emissions.

The automobile industry body reportedly stated that field investigations found “corrosion and abnormal wear caused by chloride contamination” to be the primary reason behind these component failures.

According to the report, fuel samples collected from vehicle fuel tanks showed chloride contamination levels of up to 500 mg/kg, while samples collected from retail fuel outlets recorded levels of up to 350 mg/kg.

Report Linked Rise In Contamination To E20 Rollout

The now-withdrawn report said SIAM observed that chloride contamination incidents had increased significantly since the nationwide implementation of the E20 fuel programme.

According to the report, the industry body warned that chloride contamination could corrode engine and exhaust system components, resulting in immediate failures or long-term damage depending on the contamination level.

It also reportedly cautioned that recurring contamination-related incidents could undermine consumer confidence in ethanol-blended fuels, a key component of the government’s Ethanol Blended Petrol (EBP) programme.

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SIAM’s Reportedly Suggested Changes To Fuel Standards

According to the report, SIAM urged the government to introduce mandatory chloride limits in the Bureau of Indian Standards (BIS) fuel specifications.

Under existing BIS standards, automotive fuels must be free from added chlorine and chloride materials. In the event of a consumer dispute, chloride content exceeding 10 mg/kg triggers testing through X-ray fluorescence or micro-coulometric techniques.

The report said SIAM recommended limiting total chloride content to less than 1 mg/kg for commercial E20 and E85 fuels and less than 3 mg/kg for anhydrous ethanol used for blending.

According to CNBC-TV18, SIAM informed the petroleum ministry that it had been pursuing the proposal with BIS for more than two years, but it has not yet been incorporated into the fuel standards.

Moisture Levels Also Raised As A Concern

Apart from chloride contamination, the report said SIAM also highlighted excessive moisture levels in E20 petrol sold through retail outlets.

According to the report, several fuel samples recorded moisture levels exceeding 10,000 mg/kg, more than three times the permissible limit of 3,000 mg/kg.

The report noted that ethanol is hygroscopic, meaning it naturally attracts moisture.

SIAM reportedly warned that excessive moisture could trigger phase separation in ethanol-blended fuel, potentially leaving vehicles stranded soon after refuelling.

Recommendations To Prevent Contamination

According to the report, SIAM urged the Centre to direct oil marketing companies to identify the root causes of contamination and strengthen quality monitoring across the retail fuel distribution network.

The industry body reportedly identified ageing underground storage tanks and pipelines at petrol pumps as possible sources of water ingress and contamination, recommending periodic inspections and audits of older retail outlets.

The report further said SIAM sought mandatory chloride limits for diesel as well, noting that chloride testing for diesel is currently optional, and called for regulatory intervention to strengthen fuel quality standards and reduce contamination-related vehicle failures.

Centre Continues Push For Ethanol Blending

The concerns surfaced as the government continues to expand the Ethanol Blended Petrol (EBP) programme, aimed at reducing India’s dependence on imported crude oil while lowering carbon emissions.

While the Centre has maintained that fuel quality monitoring is robust and contamination cases remain isolated, the now-withdrawn report attributed to SIAM highlighted concerns over maintaining fuel quality standards across the nationwide distribution network as ethanol blending levels increase.

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