SIAM Withdraws E20 Petrol Quality Letter, Says Figures Need Verification

The Society of Indian Automobile Manufacturers (SIAM) has withdrawn its communication to the Ministry of Petroleum and Natural Gas on E20 fuel contamination, stating that media reports had selectively quoted the document and that some of the figures cited require further verification.

The communication, sent on July 28, had flagged chloride and moisture contamination in E20 petrol samples, along with a rise in the replacement of certain fuel system components.

SIAM had noted that ethanol readily absorbs moisture, and excess water content in E20 petrol can trigger phase separation, where the petrol and ethanol split apart. Fuel in this condition, the letter noted, could damage the fuel pump and fuel injectors.

Coastal petrol stations were flagged as a specific risk zone, with high humidity, corrosion in old storage tanks, and chloride contamination cited as factors that could affect E20 quality at select outlets rather than nationwide. Multiple media reports had cited chloride levels of up to 500mg/kg in some fuel samples, against moisture content reaching 10,000mg compared to the prescribed limit of 3,000mg.

In a release dated August 4, SIAM said fuel quality testing under the prevailing regulatory framework covers more than 150 parameters and is carried out by oil marketing companies (OMCs). It described the withdrawn communication as part of routine technical deliberations between industry bodies, OMCs, auto OEMs and testing agencies.

SIAM said, "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 Ministry of Petroleum and Natural Gas has instituted a 3ppm guideline for chloride and sulphur as a precautionary measure across the ethanol blending supply chain, according to SIAM. OMCs have also stepped up water ingress testing to 8 to 12 times a day across more than 87,000 outlets, and after every instance of rain near petrol pumps.

SIAM reaffirmed that the automobile industry fully supports the government's E20 initiative, calling it important from an energy security perspective, and said there is no cause for concern since such issues have routinely been addressed between the auto industry and OMCs over the past several decades.

The government has previously acknowledged that fuel efficiency in older petrol vehicles can drop by 2 to 6 percent when running on E20, and that BS3 and older vehicles may require rubber hoses and gaskets to be replaced for compatibility with the higher ethanol content.