SIAM clarifies its E20 contamination report lacked context, says numbers need authentication

Updated: August 5, 2026 10:30 IST

Before you assume that filling up with E20 is a reason for claim rejection, it's important to understand what current regulations, insurers, and automobile manufacturers say.

Using E20 fuel does not invalidate your car insurance policy. Insurance claims are assessed based on policy terms, exclusions, and the cause of loss, not simply on whether a vehicle was fueled with E20.

A day after its E20 contamination report warning of fuel contamination went viral, Society of Indian Automobile Manufacturers (SIAM) has clarified that it lacked context.

“Some numbers quoted in the communication needs authentication through collection of elaborate data from various regions across the country followed by a comprehensive consultation with our member OEMs,” the auto body said in a statement.

It’s earlier report had claimed of rising concerns over the quality of E20 petrol. It had warned that contamination at fuel pumps was causing an increase in failures of critical engine and exhaust components.

Now the body says, “SIAM wishes to clarify the matter and place it in its correct context for the benefit of the public and all stakeholders.”

“SIAM communication in question was part of routine and ongoing technical deliberations that take place between various stakeholders, including industry bodies, oil marketing companies, auto OEMs and testing agencies,” it added.

SIAM further clarified that it has been fully supportive of Government’s E20 initiative, which is important from an energy security perspective. “There is no cause for concern arising from the matter reported as these issues have been routinely addressed over the past several decades between Auto Industry and OMCs.”

Responding to the contamination concerns Ministry of Petroleum and Natural Gas (MoPNG) said oil marketing companies (OMCs) regularly monitor fuel quality and have further 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’s statement said.

The government’s clarification was issued after SIAM report had warned that high chloride contamination and excessive moisture in ethanol-blended petrol were leading to a “huge increase” in the replacement of fuel injectors, fuel pumps, exhaust gas recirculation (EGR) valves, exhaust components and other parts that come into direct contact with fuel or engine emissions. However, that non-profit group that represents major Indian auto and engine producers, has now withdrawn those statements, claiming they lacked context and authentication.

This article was first uploaded on August five, twenty twenty-six, at twenty-seven minutes past ten in the morning.