The Ministry of Petroleum and Natural Gas has stepped up quality checks across India’s retail fuel network following concerns over contamination in E20 petrol. As of August 25, 2026, petrol sales had reportedly been stopped at 2573 outlets that were found to be non-compliant.
Indian Oil Corporation accounted for 1257 of the affected outlets, while Hindustan Petroleum Corporation and Bharat Petroleum Corporation accounted for 915 and 401, respectively.
The intensified inspections follow concerns raised by the Society of Indian Automobile Manufacturers (SIAM) over chloride contamination in ethanol-blended petrol. SIAM had written to the petroleum ministry on July 28, flagging unusually high chloride levels in samples tested by automakers. The association subsequently withdrew the communication, saying the data required further verification.
The issue nevertheless gained wider attention after a Reuters investigation highlighted internal testing carried out by vehicle manufacturers. The government’s latest measures are aimed at identifying possible contamination and water ingress across the fuel-storage and distribution chain.
As part of the quality-control exercise, oil marketing companies have been instructed to conduct frequent checks for water entering underground storage tanks. Testing is reportedly being carried out between eight and 12 times a day across 88,995 dealerships.
A broader audit has covered 84,687 fuel stations, with older outlets receiving particular attention. Field teams are also examining underground tanks during rainfall, when water ingress risks can be more easily identified.
Automation and monitoring systems are operational at 85,649 outlets, with malfunctioning equipment being repaired on priority, according to the ministry.
Oil marketing companies have also conducted 7,296 sulphur tests and 1079 chloride tests on tankers transporting ethanol. In addition, 151 chloride tests have been carried out on their own storage tanks.
The scale of the exercise indicates that authorities are focusing not only on the composition of E20 itself but also on possible contamination introduced during storage and transportation.
The E20 transition has generated debate among vehicle manufacturers and motorists, particularly over fuel efficiency, component durability and compatibility with older vehicles.
E20 petrol contains 20 percent ethanol and has progressively become the standard petrol blend in India. Since April 1, 2026, E20 has been the only petrol blend available through the country’s retail network, ending widespread availability of the earlier E10 formulation.
Automakers have been conducting their own fuel-sample testing as concerns have grown. According to data reviewed by Reuters, Maruti Suzuki, Tata Motors and Mahindra & Mahindra collectively tested more than 250 samples collected from petrol stations across 21 states and Union territories.
The findings reportedly showed significant variations in chloride and water levels between regions. However, the data has also been described as preliminary, and the manufacturers have not established that E20 itself is responsible for all reported vehicle failures.
Mahindra, for instance, has rejected interpretations of an internal communication that attributed rapid vehicle failures directly to organic chloride, describing the available industry data as limited and preliminary.
The automaker testing cited in the reports found chloride concentrations exceeding the 3ppm limit used in industry procurement specifications in several regions.
