SIAM withdraws E20 fuel quality letter, says findings need further technical validation

SIAM clarified that the communication formed part of routine technical discussions held among industry stakeholders, including automobile manufacturers, oil marketing companies, testing agencies and other concerned organisations, as part of the ongoing review process

Written By Rajendra Saxena
Updated5 Aug 2026, 04:45 PM IST
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SIAM Withdraws Letter Flagging Contamination Of E20 Fuel: Withdraws It Later

The Society of Indian Automobile Manufacturers (SIAM) has withdrawn a letter sent to the Ministry of Petroleum and Natural Gas that had raised concerns over E20 fuel quality and its alleged impact on vehicle performance, saying the observations required further technical validation.

In a statement, SIAM clarified that the communication formed part of routine technical discussions held among industry stakeholders, including automobile manufacturers, oil marketing companies, testing agencies and other concerned organisations, as part of the ongoing review process.

“Some numbers quoted in the communication need authentication through collection of elaborate data from various regions across the country followed by a comprehensive consultation with our member OEMs,” the auto industry body said.

Also Read | E20 fuel row: Kejriwal alleges car manufacturers being pressured by Centre

It further said: “The referred numbers reported in the media need authentication as mentioned above and therefore SIAM is withdrawing its earlier communication.”

According to reports, the withdrawn letter had stated that investigations into certain vehicle complaints pointed to corrosion and component wear linked to elevated chloride levels in the fuel. It had warned that excessive chloride content could have a damaging impact on critical engine parts.

SIAM highlights high moisture levels in E20

The industry body had also highlighted concerns over high moisture levels in E20 fuel supplied at some retail outlets. It noted that moisture content exceeding one per cent could lead to fuel separation, potentially causing vehicles to stop functioning immediately after refuelling.

The letter had further emphasised the importance of proper upkeep of storage tanks and fuel pipelines at retail fuel stations to ensure the quality of E20 fuel.

In its statement, SIAM said: “MoPNG (Ministry of Petroleum and Natural Gas) has also instituted 3 ppm guidelines for chloride/sulphur as a precautionary measure for all ethanol being blended into the petrol supply chain. All of these steps fully meet the needs of the automobile industry.”

Also Read | Nitin Gadkari gets Bombay HC nod to sue Meta, Google over E20 petrol deepfakes

“We understand from OMCs that checks have been instituted, including water ingress testing about 8-12 times a day at over 87,000 outlets & after each instance of rain near petrol pumps,” it added.

SIAM reiterated its strong support for the Government of India's E20 fuel programme, stating that the automobile industry remains fully committed to the initiative, which plays a key role in enhancing the country's energy security.

“There is no cause for concern arising from the matter reported as these issues have been routinely addressed over the past several decades between the auto industry and OMCs,” SIAM said.

(With agency inputs)

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