Carmakers raised E20 fuel contamination concerns in private emails: Report

India’s main automobile industry body withdrew a letter on fuel contamination last week, hours after the government publicly assured consumers that ethanol-blended petrol was safe. The Society of Indian Automobile Manufacturers (SIAM) said the letter was withdrawn because “some numbers” needed “authentication”.

But private communications between industry executives reviewed by Reuters showed that Maruti Suzuki, Tata Motors and Mahindra had discussed concerns about contamination in petrol blended with 20 per cent ethanol, known as E20, in the days before SIAM withdrew the letter.

The industry data was compiled from more than 250 fuel samples collected from pumps over a year across as many as 21 of India’s 36 states and territories. The testing found high chloride contamination in samples from 18 states, along with high moisture levels.

The emails showed how automakers were privately discussing contaminants such as chloride and moisture, which they said were affecting vehicles, while publicly supporting the government’s E20 rollout.

The government began rolling out E20 nationwide from last year to reduce pollution and cut oil imports. With no other petrol available since April 1, concerns among consumers have grown over the impact of E20 on vehicle performance.

SIAM withdrew its July 28 letter following a government and public uproar over the warning. The group told Reuters the data was intended only for internal circulation, discussion and validation, and was collected by “very few” automakers.

Maruti, Tata and Mahindra, which were part of the SIAM internal emails reviewed by Reuters, account for 67 per cent of India’s car market.

“As the testing basis and sample size were insufficient to support definitive conclusions, the communication was withdrawn” as it was sent inadvertently, SIAM said, adding that it intended to undertake a proper scientific study.

The executives’ emails did not raise concerns about data authentication.

The Ministry of Petroleum and Natural Gas did not respond to requests for comment. Its minister, Hardeep Singh Puri, said on Friday that India’s oil marketing companies had started “rigorous testing” of fuel at retail outlets two weeks before receiving the SIAM letter.

Only four cases of contamination were found, he said. State-run fuel retailers also said last week that extensive random and scientific tests showed “no cause for any alarm on account of fuel contamination”.

Mahindra said conclusions drawn from its executive’s emails “are completely baseless and incorrect”, that the industry data was limited and preliminary, and that it did not see issues with E20.

E20 has angered motorists, with hundreds alleging that it has reduced mileage and increased wear and tear on their cars. It has also triggered at least one court challenge.

SIAM had earlier said high levels of chloride were corrosive for auto parts, while high moisture levels in fuel could immobilise a vehicle immediately after fuelling.

In group emails exchanged among Maruti, Tata, Mahindra and SIAM, Maruti senior executive Anoop Bhat raised concerns over the high chloride findings. He said the issue had been privately discussed with the petroleum ministry on July 26.

State-wise findings shared in the emails showed chloride levels of 6 to 570 parts per million (ppm) in Rajasthan, 1.4 to 420 ppm in New Delhi and 10 to 357 ppm in Maharashtra.

The Indian government says the permissible limit is 3 ppm.

The data tables also showed moisture levels reaching 13,000 ppm in Andhra Pradesh and 12,500 ppm in Uttar Pradesh, compared with a government benchmark of 3,000 ppm.

The reason for the contamination is not known. In its withdrawn letter, SIAM said it had seen an increase in chloride levels since the rollout of E20 and had asked the government to direct oil marketing companies to find the root cause.

For moisture, SIAM said the cause could be inadequate “maintenance of the underground storage tanks and pipelines at retail outlets”.

In his July 26 email, Maruti’s Bhat wrote that 1 ppm of chloride was the maximum that current fuel injectors, which transport fuel to the engine, “can tolerate”.

“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.

Mahindra’s senior principal engineer of fluids technology, R Ramaprabhu, said in emails that organic chloride was the contaminant responsible for the rapid vehicle failures the industry was seeing and could spoil engines “within 200 km”.

“Majority cases reported immediately after fuelling … is due to organic chloride,” he wrote, adding that Mahindra had “strong evidences” of fuel sample data from retail outlets.