The concerns come as E20 petrol, which contains 20% ethanol blended with petrol, has been implemented nationwide, while discussions are underway on future programmes involving higher ethanol blends.
SIAM members have observed what the industry body describes as a “huge increase” in issues involving components such as fuel injectors, fuel pumps, EGR valves, exhaust systems and other parts that come into direct contact with fuel or engine emission gases.
Investigations into failed vehicle components have found corrosion or wear caused by high chloride presence traced to the fuel used. Deposits found on failed parts have also shown the presence of chlorides.
Fuel samples taken from vehicle tanks have shown chloride concentrations reaching as high as 500 mg/kg. Samples collected from fuel retail outlets across different regions have recorded chloride contamination of up to 350 mg/kg.
Significantly, SIAM said the increase in chloride-related issues has been observed specifically after E20 implementation, while very few such cases were seen prior to its rollout. Chloride accumulation in fuel or exhaust systems can cause corrosion and permanent damage to engine parts, either immediately or over time depending on contamination levels.
SIAM has proposed a total chloride limit of less than 1 mg/kg or ppm for commercial E20 and E85 fuels, along with a limit of less than 3 mg/kg for anhydrous ethanol used for blending.
The industry body said automakers have been raising the chloride contamination issue at the BIS committee for more than two years. However, a decision to include chloride as a mandatory fuel quality test remains pending. SIAM has sought government intervention and asked OMCs to identify the root cause of the contamination and introduce necessary controls.
Automakers have also flagged excessive moisture in E20 petrol. While the permitted moisture level is 3,000 mg/kg, SIAM said levels exceeding 10,000 mg/kg, or 1%, have been observed in many cases.
According to SIAM, high moisture can cause phase separation of the fuel and immobilise a vehicle immediately after refuelling. Poor maintenance of underground storage tanks and pipelines at retail outlets could be one possible source of contamination, prompting calls for inspections and periodic audits of older outlets.
The Petroleum and Natural Gas Ministry has responded to reports of fuel contamination, saying fuel quality is regularly monitored by oil marketing companies. The ministry said water ingress testing is being conducted 8-12 times a day across more than 87,000 retail outlets.
According to the ministry, over 2,000 samples have been tested for chloride and sulphide contamination, with only two cases of chloride contamination detected across the country so far. Sales from the two outlets were suspended immediately. The ministry said strict action would be taken wherever contamination or adulteration is detected and OMCs have been instructed to proactively check for contamination across the fuel supply chain.
SIAM has maintained its support for India's ethanol blending programme, while stressing that tighter fuel quality controls are necessary to prevent contamination-related failures and avoid creating a negative perception of E20 among consumers.