SIAM Clarifies Fuel Quality Issue, Withdraws Letter and Reaffirms Support for E20

Written by: Team Angel OneUpdated on: 5 Aug 2026, 8:07 pm IST
SIAM withdrew its fuel quality letter, stating the cited figures need verification, while reaffirming the auto industry's support for the E20 programme.
SIAM Clarifies Fuel Quality Issue
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The Society of Indian Automobile Manufacturers (SIAM) has withdrawn an earlier communication on fuel quality after media reports referred to extracts mentioning chloride and sulphur content in petrol, as per The Economic Times report.  

The industry body stated that the figures quoted were part of an internal technical exchange and require further verification before being treated as confirmed observations. 

Technical Review Across Stakeholders 

SIAM stated that communication was shared during regular discussions involving automobile manufacturers, oil marketing companies (OMCs), testing agencies, and other industry stakeholders.  

It added that the values require validation using data collected from different regions of the country and discussions with member original equipment manufacturers (OEMs). 

Existing Fuel Testing Process 

Fuel quality continues to be monitored under the current regulatory framework through testing more than 150 parameters. SIAM stated that these checks are carried out by OMCs as part of the standard process before fuel is supplied through the retail network. 

The association indicated that technical exchanges on fuel quality are a routine exercise between the automobile industry and fuel suppliers and are conducted as part of the existing quality review mechanism. 

Safeguards for Ethanol-Blended Fuel 

SIAM also referred to the quality measures applicable to ethanol blended into petrol. It noted that the Ministry of Petroleum and Natural Gas (MoPNG) has prescribed a precautionary limit of 3 parts per million (ppm) for chloride and sulphur in ethanol entering the petrol supply chain. 

The association also referred to information provided by OMCs, under which water ingress testing is carried out between eight and 12 times a day across more than 87,000 fuel retail outlets. Similar checks are also undertaken after rainfall near petrol pumps. 

Position on E20 Programme 

SIAM stated that the automobile industry continues to support the Government of India's E20 ethanol blending programme. It also noted that technical issues linked to fuel quality have been addressed through regular coordination between vehicle manufacturers and OMCs over the years. 

The association stated that the issue reported recently does not indicate any change in the industry's position on the E20 programme. 

Read MoreIndia's Annual Airport Passenger Handling Capacity Surpasses 580 Million: Government! 

Conclusion 

The industry body has asked that its communication be viewed in its complete context, noting that the reported values are yet to be authenticated. It also maintained its support for the E20 ethanol blending initiative. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Aug 5, 2026, 2:37 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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