The debate over ethanol-blended petrol intensified this week — with existing questions over mileage and older-vehicle compatibility now joined by concerns about alleged moisture contamination and usually high chloride levels in fuel. Both the Indian government and oil marketing companies have now rejected the contamination claims, even as the backlash over E20 rollout continues. 

The latest controversy followed reports citing parts of a communication by the Society of Indian Automobile Manufacturers (SIAM) concerning chloride and sulphur levels. SIAM subsequently withdrew the statement, saying that some of the numbers required further authentication. 

Three Oil Marketing Companies (OMCs) also conducted nationwide testing and issued a joint statement on Friday rejecting the allegations. A subsequent fact-check from the Petroleum Ministry mentioned that the results did not prove claims of chloride levels as high as 500 parts per million (ppm) or the alleged presence of moisture.

What did SIAM say?

SIAM issued a clarification on August 4 after excerpts from its message appeared in media reports. The missive was also withdrawn later — with the organisation saying some numbers required authentication.

The industry body said the communication was part of routine technical discussions in which OMCs, automakers, testing agencies and industry bodies were involved. It further added that fuel-quality testing under the existing regulatory framework covers more than 150 parameters.

Importantly, SIAM mentioned, “some numbers quoted in the communication need authentication” based on wider data collection and consultations with member automakers.

It later withdrew the earlier communication and stated there was “no cause for concern” arising from the reported matter.

500 ppm chloride claim: What did OMC tests reveal?

Following the controversy, OMCs conducted additional testing across refineries, ethanol distilleries, fuel stations and terminals.

As per the August 8 PIB statement, more than 100 randomly selected refinery petrol samples recorded chloride levels of 1 ppm or less.

A task force comprising OMCs and the Centre for High Technology tested ethanol samples from 80 distilleries, with all of them registering chloride below 3 ppm. More than 80 samples collected from OMC terminals also indicated levels below 3 ppm.

At retail outlets, intensified monitoring covered more than 1,000 samples. Of the 160 chloride test reports analysed, the readings ranged from 0 to 3 ppm.

However, four isolated cases of elevated chloride were found. Supplies were suspended and corrective measures initiated, the government mentioned.

The results therefore did not support claims of widespread chloride concentrations reaching several hundred ppm, although isolated deviations were detected.

What about the moisture claim in E20 fuel?

HPCL said through an X statement that inspections of underground storage tanks have been intensified at around 90,000 retail outlets, with tanks being checked eight to 12 times daily. The company mentioned that no water has been confirmed in inspections done so far.

A separate statement from BPCL, also shared via social media, added that the blended fuel had undergone laboratory and field testing covering engine durability, resistance, corrosion, startability, emissions and fuel efficiency for vehicles designed and certified for E20.

Ethanol is hygroscopic in nature and therefore capable of absorbing water from humid surfaces.

What are consumers saying?

Despite the assurances, some motorists remain unconvinced.

“First, every instance of E20 engine damage was blamed on ‘local petrol pump contamination ‘. Now, even contamination itself is being dismissed as a statistical non-issue to claim everything is fine,” fumed one X user. 

The social media user, identified on his profile as a banker, also raised concerns over older fuel systems and alleged that SIAM was pressured to withdraw its communication. Similar posts have flooded X and other social media platforms in spite of clarifications from the government and OMCs. Motorists have repeatedly questioned whether older vehicles could suffer corrosion, wear or reduced performance — with some studies outlining a sharp surge in complaints this year.

Separately, ANI reported in July that the Raipur District Consumer Disputes Redressal Commission ordered a manufacturer to replace a car following severe engine damage allegedly related to E20 use. The Commission noted that the engine was not compatible with E20.

If the vehicle was not replaced, the manufacturer was ordered to refund Rs 20.50 lakh besides Rs 1 lakh compensation and Rs 10,000 litigation costs. 

Kejriwal, Rahul Gandhi question E20 rollout

Opposition leaders including AAP national Convenor Arvind Kejriwal and Congress MP Rahul Gandhi have also raised concerns. The former had also led a protest march towards to the Prime Minister’s residence on Tuesday with more than two lakh E20 petitions. The police had blocked the marchers as Kejriwal sought to  “personally hand over petitions signed by the public” against the blended fuel.

“Stop buying new petrol and diesel vehicles until the government comes clean on E20,” AAP said in a post on X mentioning Kejriwal’s statement. He also claimed that nearly 30 crore pre-2023 vehicles were designed for E10 rather than E20.

Congress leader and Lok Sabha Leader of Opposition Rahul Gandhi also said that Congress would raise the issue in a “massive way.”

“This is destroying people’s cars, destroying people’s scooters, destroying people’s lives and literally stealing directly from them,” Gandhi stated in a PTI video.

What is the latest update for motorists?

The government said on July 30 that more than 20 crore-two-wheelers and three crore petrol cars have operated on higher ethanol blends without verified proof of widespread engine failures linked to ethanol blending.

It has, however, acknowledged that certain older E10-designed vehicles could experience a 3-5% reduction in fuel economy