SIAM Flags E20 Fuel Contamination Amid Rising Vehicle Part Failures

The Society of Indian Automobile Manufacturers (SIAM) has raised concerns over the quality of E20 petrol, saying automobile companies are reporting a noticeable increase in failures of fuel system and exhaust-related components, as per the CNBC-TV18 report.
As per the report, in a letter to the Ministry of Petroleum and Natural Gas, the industry body said fuel injectors, fuel pumps, exhaust gas recirculation (EGR) valves and other parts in contact with fuel are being replaced more frequently than before.
Centre Asks OMCs to Tighten Monitoring
Following discussions with automobile manufacturers and oil marketing companies (OMCs), the Centre has directed OMCs to strengthen fuel quality checks at retail fuel stations.
The government has also asked them to identify the source of contamination and improve monitoring across the fuel distribution network as complaints linked to fuel quality increase.
Chloride Contamination Under Scrutiny
According to SIAM, investigations carried out by its member companies point to chloride contamination as a major reason for corrosion in vehicle components.
Fuel samples collected from vehicle tanks contained chloride levels of up to 500 mg/kg, while samples taken from retail outlets recorded levels of up to 350 mg/kg.
SIAM has proposed that the Bureau of Indian Standards (BIS) introduce a mandatory chloride limit of less than 1 mg/kgfor commercial E20 and E85 fuels, and less than 3 mg/kg for anhydrous ethanol used for blending. It said the proposal has been pending with BIS for more than two years.
Moisture Levels Also Exceed Standard
The industry body has also highlighted excessive moisture content in E20 fuel. It noted that several retail fuel samples recorded moisture levels of more than 10,000 mg/kg, against the permissible limit of 3,000 mg/kg.
According to SIAM, excessive moisture can cause phase separation in ethanol-blended fuel, affecting engine performance, and, in some cases, leaving vehicles unable to restart after refuelling.
SIAM has also pointed to ageing underground storage tanks and pipelines at petrol pumps as possible sources of contamination and has recommended periodic inspections and audits. It has further sought mandatory chloride limits for diesel fuel, where the parameter is currently optional.
Read More: India’s July 2026 Fuel Exports Reach 1-Year High Driven by Strong Diesel Margins!
Conclusion
The Centre has initiated additional fuel quality checks following SIAM's concerns over contamination in E20 petrol. The industry body has also sought changes to fuel quality standards and mandatory contamination limits.
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.
Take action on today’s market news - Complete your Demat Account Opening now.
Published on: Aug 4, 2026, 2:37 PM IST

Team Angel One
- India Plans Regulatory Changes for Semiconductor Equipment and Auto Component Manufacturers
- Innovation Platform Capital (IPC) Proposes ₹83,480 Crore Green Hydrogen and Data Centre Plan in Karnataka
- Government Strengthens Ethanol Blending Norms for OMCs
- Local Manufacturing Boost: Government Approves Transfer of DRDO Missile Technology
- Government Revises Medical Device Rules to Ease Outsourced Sterilisation Licensing


