E20 Petrol Controversy: Are Automakers Hiding Fuel Contamination Concerns?

The recent controversy surrounding E20 petrol in India has revealed serious concerns among major automakers about fuel contamination. Despite public assurances from the government, internal communications show that companies like Maruti Suzuki, Tata Motors, and Mahindra were worried about high levels of chloride and moisture in the fuel. This has led to increased consumer anxiety regarding vehicle performance and sparked legal challenges. As the debate continues, the implications of these findings could significantly impact the automotive industry and fuel regulations in India. Read on to uncover the full story behind the E20 petrol scandal.

By Narendra Chaudhary Aug 14, 2026, 10:04 IST

Concerns Over E20 Petrol Quality Emerge

New Delhi: Following India's recent assurances regarding the safety of ethanol-blended petrol, the Society of Indian Automobile Manufacturers (SIAM) has retracted a complaint about fuel contamination submitted just a week prior. The organization cited the need for further verification of certain figures. However, internal communications among leading automakers, including Maruti Suzuki, Tata Motors, and Mahindra, revealed that they had serious concerns about the quality of petrol containing 20% ethanol (E20).

This internal data represents the most thorough testing of fuel conducted by the industry since the government initiated the nationwide rollout of E20 last year, aimed at reducing pollution and decreasing oil imports. With no alternative petrol available since April 1, consumer anxiety has risen regarding potential impacts on vehicle performance. Emails from car manufacturers indicate that they were privately alarmed about contaminants like chloride and moisture in E20, which they claimed could damage vehicles, despite publicly supporting the government's initiative.

SIAM withdrew its letter regarding fuel contamination after public backlash, stating that some figures required further authentication. The previously undisclosed data and emails reviewed indicated that several automakers had conducted extensive testing, gathering over 250 fuel samples from various pumps across 21 of India's 36 states and union territories. They discovered significant chloride contamination in samples from 18 states, along with elevated moisture levels. Notably, the executives' emails did not express concerns about the authenticity of the data.

SIAM clarified that the data was meant for internal discussion and validation, collected by a limited number of automakers. Maruti, Tata, and Mahindra, which together represent 67% of India's car market, were involved in the internal communications. SIAM stated that the sample size was insufficient to draw definitive conclusions, leading to the inadvertent withdrawal of the communication, and expressed intentions to conduct a comprehensive scientific study. The Ministry of Petroleum and Natural Gas did not respond to inquiries for comment.

Minister Hardeep Singh Puri mentioned that oil marketing companies had initiated rigorous testing of fuel at retail locations two weeks before SIAM's letter was received, reporting only four instances of contamination. State-run fuel retailers also claimed that extensive random and scientific tests indicated no cause for alarm regarding fuel contamination.

Mahindra refuted the conclusions drawn from its executive's emails, labeling them as unfounded and incorrect, asserting that the industry data was preliminary and limited, and that they did not perceive issues with E20. However, E20 has sparked outrage among motorists, with numerous complaints about decreased mileage and increased wear on vehicles, leading to at least one legal challenge. SIAM had previously indicated that high chloride levels could corrode auto parts, while excessive moisture could immobilize vehicles shortly after refueling.

In group emails among Maruti, Tata, Mahindra, and SIAM, Maruti's senior executive Anoop Bhat expressed concerns regarding high chloride levels, noting that this issue had been privately discussed with the petroleum ministry on July 26. Industry data revealed chloride levels ranging from 6 to 570 parts per million (ppm) in Rajasthan, 1.4 to 420 ppm in New Delhi, and 10 to 357 ppm in Maharashtra, while the government stipulates a permissible limit of 3 ppm.

Moisture levels were alarmingly high, reaching 13,000 ppm in Andhra Pradesh and 12,500 ppm in Uttar Pradesh, compared to the government benchmark of 3,000 ppm. The source of contamination remains unidentified. SIAM's now-retracted letter indicated an increase in chloride levels since the introduction of E20 and urged the government to direct oil marketing companies to investigate the root cause. For moisture, they attributed the issue to inadequate maintenance of underground storage tanks and pipelines at retail outlets. Bhat noted that fuel injectors can only tolerate a maximum of 1 ppm of chloride. Mahindra's senior principal engineer of fluids technology, R Ramaprabhu, stated that organic chloride was responsible for the rapid vehicle failures being observed and could damage engines within 200 km. He claimed Mahindra had strong evidence from fuel sample data collected at retail outlets. Maruti, Mahindra, and Tata did not respond to requests for comments.