Petrol dealers have raised concerns that E20 ethanol-blended petrol may be more prone to contamination during monsoons and in coastal areas because ethanol absorbs water. The issue matters because fuel quality, storage design, and vehicle compatibility affect both consumer safety and the credibility of India’s fuel-blending push.

According to petrol pump owners, existing underground storage tanks were designed for conventional petrol. They argue that water ingress or condensation can trigger phase separation, leaving a water-rich layer that may be dispensed first. Dealers say this can lead to starting trouble, injector malfunction, fuel-pump failure, and in severe cases engine damage.

Dealers also fear corrosion in mild-steel tanks and pipes. They say they bear the loss when contaminated stock is discarded, and they complain that oil companies discourage public warning boards at petrol pumps.

Indian Oil Corporation Limited has said it has zero tolerance for contamination and is carrying out regular inspections and testing. The immediate issue is therefore not the existence of an ethanol-blending programme, but the reliability of storage, handling, and quality-monitoring systems in different weather and geography conditions.

Background and earlier position

Ethanol blending in petrol is part of India’s wider fuel-diversification and energy-security strategy. The operational question has always been whether retail infrastructure, storage tanks, and vehicle systems can handle higher ethanol content without quality deterioration, water ingress, or corrosion-related losses.

Related current affairs