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BUSINESS · AUG 5, 2026

SIAM Withdraws Fuel Contamination Warning Over E20 Petrol

The Society of Indian Automobile Manufacturers withdrew a warning about fuel contamination causing vehicle part failures, stating quoted figures required further authentication.

The Society of Indian Automobile Manufacturers (SIAM) withdrew a July 28 communication that flagged concerns over chloride and moisture levels in E20 fuel. The original letter argued that fuel contamination was causing a surge in failures of fuel pumps, fuel injectors, and EGR valves, potentially creating a negative impression of the government's ethanol blending initiative among consumers.

Following media reports that sparked debate over the contamination, SIAM clarified that the letter was part of routine technical deliberations between industry bodies, oil marketing companies, and auto OEMs. The organization stated it is withdrawing the communication because certain figures require authentication through comprehensive data collection and consultation with member OEMs. SIAM reassured the public that there is "no cause for concern" and reiterated its support for the Government of India's E20 initiative for energy security.

The Ministry of Petroleum and Natural Gas defended the fuel quality, reporting that only two instances of chloride contamination were detected nationwide out of more than 2,000 samples. As a precaution, the ministry instituted 3ppm guidelines for chloride and sulphur. Additionally, oil marketing companies have implemented intensified monitoring, including water ingress testing eight to 12 times daily across more than 87,000 retail outlets.


Reported across 11 outlets
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Society of Indian Automobile ManufacturersGovernment of India

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