Indian Carmakers Raise E20 Fuel Contamination Concerns

Core News & Key Facts

Indian automobile manufacturers privately raised concerns about possible contamination in E20 petrol before the industry’s public warning was withdrawn, according to communications reviewed by Reuters. Maruti Suzuki, Tata Motors and Mahindra were among the companies that discussed the issue through internal communications with the Society of Indian Automobile Manufacturers, or SIAM.

The industry had tested more than 250 fuel samples collected from retail outlets across as many as 21 Indian states and territories. The data showed elevated chloride contamination in samples from 18 states, along with high moisture levels in some locations.

India began nationwide rollout of petrol blended with 20% ethanol, known as E20, as part of efforts to reduce pollution and dependence on imported oil. Since April 1, consumers have reportedly had no alternative petrol available in the market, increasing attention on the fuel’s impact on vehicles.

Context & Official Statements

SIAM had sent a letter to the government on July 28 raising concerns about fuel contamination. The association later withdrew the communication after public and government reaction, saying some of the figures required authentication and that the testing basis and sample size were insufficient for definitive conclusions.

The industry data nevertheless showed significant variations in chloride levels. Samples in Rajasthan reportedly ranged from 6 to 570 parts per million, while Delhi recorded levels between 1.4 and 420 ppm and Maharashtra between 10 and 357 ppm. The government’s stated permissible limit is 3 ppm.

Moisture levels were also reported as high as 13,000 ppm in Andhra Pradesh and 12,500 ppm in Uttar Pradesh, compared with a benchmark of 3,000 ppm.

Mahindra disputed conclusions drawn from the emails, calling them baseless and incorrect and saying it does not see issues with E20. Maruti and Tata Motors did not respond to Reuters' requests for comment.

The government, meanwhile, said its oil marketing companies had conducted extensive testing and found only four contamination cases.

Impact & What to Expect Next

The concerns are significant because chloride can be corrosive to vehicle components, while excessive moisture can affect fuel-system operation. SIAM had said high chloride levels could damage automobile parts and requested government action to identify the cause.

Industry communications also suggested that poor maintenance of underground storage tanks and pipelines at fuel stations could contribute to moisture contamination. However, the precise source of the reported contamination remains unclear.

SIAM said it intends to conduct a proper scientific study. The government has maintained that there is no cause for alarm based on its testing. The competing findings mean further testing and independent validation will be important before definitive conclusions are reached about the broader safety and quality of E20 petrol.