E20 Fuel Row: Emails Show How India’s Carmakers Flagged Concerns Privately, But Supported Publicly

India's leading carmakers privately discussed concerns about possible contamination in E20 petrol, including high chloride and moisture levels, even as the industry publicly supported the government's nationwide rollout of the ethanol-blended fuel.

Emails and confidential industry data showed executives from Maruti Suzuki, Tata Motors and Mahindra & Mahindra exchanging concerns over fuel samples collected from retail outlets across the country, as per a report by Reuters.

The development has brought renewed attention to the Society of Indian Automobile Manufacturers' (SIAM) decision to withdraw a letter warning the government about possible contamination.

What Did Industry's Fuel Tests Find?

The industry data covered more than 250 fuel samples collected over roughly a year from as many as 21 of India's 36 states and territories.

The samples showed elevated chloride levels in several locations across 18 states, along with high moisture content, as per Reuters.

Chloride readings ranging from 6 to 570 parts per million (ppm) in Rajasthan, 1.4 to 420 ppm in Delhi-NCR and 10 to 357 ppm in Maharashtra were also reported. The government's permissible limit is 3 ppm.

The data also showed moisture levels reaching 13,000 ppm in Andhra Pradesh and 12,500 ppm in Uttar Pradesh, against the prescribed benchmark of 3,000 ppm, the report said.

SIAM had warned in its July 28 letter that excessive chloride could corrode vehicle components, while high moisture levels could potentially immobilise a vehicle after refuelling.

The letter was subsequently withdrawn, with SIAM saying that "some numbers" required "authentication".

Why Did SIAM Withdraw Complaint?

SIAM withdrew its communication after the issue triggered a government response and public debate.

The industry body later said the testing base and sample size were insufficient to draw definitive conclusions and that the letter had been sent inadvertently.

SIAM said the information had been intended for internal discussion and validation and had been gathered by "very few" automakers. It added that it plans to undertake a more comprehensive scientific study, as per Reuters.

What Are Carmakers Worried About?

The private emails reviewed by Reuters indicate that the participating companies had already been actively discussing the findings.

Maruti executive Anoop Bhat reportedly wrote that the chloride issue had been discussed with the petroleum ministry on July 26.

"Lesser than 1 ppm in ⁠E20 is ​also in line with international standards. Same is in line with discussion held with" the petroleum ministry, Bhat wrote, as per Reuters.

Mahindra executive R Ramaprabhu linked organic chloride contamination to rapid vehicle failures.

"Majority cases reported immediately after fuelling... is due to organic chloride," he ​wrote, adding that Mahindra has "strong evidences" of fuel sample data from retail outlets, as per Reuters' report.

He also reportedly warned such contamination could damage engines "within 200 km".

Mahindra later told Reuters that conclusions drawn from its executive's emails were "completely baseless ‌and incorrect", describing the industry data as limited and preliminary. It added that it does not see issues with E20.

Maruti and Tata did not respond to Reuters' requests for comment.

What's The Govt's Position?

The episode highlights the difficult balancing act for India's auto industry: supporting the E20 programme as a national policy while seeking answers to questions raised internally about fuel quality and contamination at the retail level.

Petroleum Minister Hardeep Singh Puri said last week that oil marketing companies had begun rigorous testing of fuel at retail outlets before SIAM's letter was received.

Only four contamination cases were found, he said.

State-run fuel retailers also said their random and scientific testing found no reason for concern over fuel contamination.

The government has admitted to impact on engine and mileage by up to 5-6% due to the ethanol blended fuel.