SIAM withdraws E20 fuel quality letter amid contamination concerns

Auto industry body SIAM has withdrawn its letter on E20 fuel quality concerns after issuing a detailed clarification. The move comes a day after reports based on its July 28 communication triggered debate over E20 fuel contamination and its possible impact on vehicle components. SIAM said some media reports highlighted only parts of its communication, mainly those related to chloride and sulphur content, without the full context.

SIAM withdraws E20 fuel quality letter — reasons cited for the retraction

SIAM said its July 28 communication was part of routine technical discussions involving oil marketing companies (OMCs), vehicle manufacturers, testing agencies and other industry stakeholders. It added that fuel quality is regularly tested by OMCs against more than 150 parameters under the existing regulatory framework.

The industry body also said the figures mentioned in its earlier communication require further verification through data collection from different regions and discussions with member OEMs. It said this was the reason for withdrawing the letter. SIAM also reassured consumers that there is no cause for concern and reaffirmed its support for the Government of India's E20 fuel programme.

Government's response and testing data

The clarification comes after the Ministry of Petroleum and Natural Gas (MoPNG) said fuel quality is regularly monitored across the country. According to the ministry, oil marketing companies (OMCs) conduct water ingress tests 8 to 12 times a day at more than 87,000 fuel stations. Additional checks are also carried out after heavy rainfall near fuel outlets. The ministry added that over 2,000 fuel samples have been tested for chloride and sulphide contamination.

The ministry said only two cases of chloride contamination have been detected nationwide so far. Fuel sales at those outlets were stopped immediately, and OMCs have been directed to strengthen monitoring across the fuel supply chain. It also said strict action will be taken if any fuel contamination or adulteration is found.

What the original communication flagged

The original SIAM letter had highlighted cases where fuel samples showed higher-than-expected chloride levels and excess moisture. According to the industry body, these conditions could speed up corrosion in the fuel system and increase wear on components such as fuel injectors, fuel pumps and EGR valves.

The letter also pointed to ageing underground fuel storage tanks and transport infrastructure as possible reasons for the contamination. SIAM had requested the government to introduce mandatory chloride limits in the E20 fuel specification.

Issue not entirely closed

While SIAM has withdrawn its earlier letter, it has not ruled out the need for further investigation. The industry body said more data from across the country and discussions with member OEMs are needed before drawing any conclusions.

The government, meanwhile, maintains that the issue is limited to isolated cases and that fuel quality monitoring has been strengthened nationwide. Going forward, the focus is expected to remain on tighter quality checks across the fuel supply chain and continued monitoring as E20 fuel adoption expands across India.

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