What exactly is “contaminated fuel”?
That question has dominated public discourse ever since Bihar-based YouTuber Manish Kashyap alleged that his Toyota Innova Hycross developed engine problems despite being fully compatible with E20 petrol. Toyota Kirloskar Motor (TKM) dismissed the allegation that E20 damaged the vehicle and instead attributed the issue to contaminated fuel.
Now, fresh statements by petrol pump owners and a recent consumer court order in Raipur have brought renewed attention to the issue. Additionally, the explanation offered by petrol pump owners suggests that the contamination blamed by automakers may, in some cases, originate at the petrol pump itself, not because ethanol is inherently harmful, but because the infrastructure used to store and dispense E20 may not be fully equipped to handle it.
Petrol pump owners explain how E20 can become contaminated
A report published by The Hindu, quoting three petrol pump owners who spoke on condition of anonymity, sheds light on a possible source of contamination.
According to them, ethanol’s hygroscopic nature; its tendency to absorb moisture from the atmosphere—poses challenges because many underground fuel storage tanks were originally designed for conventional petrol rather than higher ethanol blends.
The dealers explained that underground storage tanks frequently accumulate small quantities of water due to rainwater ingress, condensation or even moisture introduced through fuel tankers. Under normal circumstances, this may not pose a significant issue. However, if water content exceeds around 0.5 per cent, ethanol readily binds with the water.
This results in phase separation, where the ethanol-water mixture settles at the bottom of the underground tank while petrol forms a separate layer above.
Since dispensing units draw fuel from the bottom of these tanks, some vehicles may end up receiving the water-rich ethanol layer instead of properly blended E20 petrol.
According to the petrol pump operators, such contamination can cause vehicles to refuse to start or break down after travelling some distance.
They further claimed that the problem becomes more severe during the monsoon and in coastal regions where underground water ingress is more common if storage tank seals are compromised.
One of the dealers also warned that underground tanks and pipelines made from mild steel could become more vulnerable to corrosion because ethanol absorbs moisture, potentially worsening contamination over time.
Is this an indirect admission that pump-level contamination exists?
The significance of these admissions extends beyond explaining ethanol’s chemistry.
India has been rolling out E20 petrol since 2023, while pilot projects involving higher ethanol blends had begun even earlier. Vehicle manufacturers have also gradually transitioned towards producing E20-compatible models following the Centre’s mandate that all newly manufactured petrol vehicles from April 2023 onwards must support E20 fuel.
Yet, more than three years after E20 entered widespread circulation, petrol pump owners themselves admit that much of the storage infrastructure continues to consist of underground tanks originally built for conventional petrol.
Ironically, while some dealers have cited ethanol’s moisture-absorbing properties to explain contamination, the explanation simultaneously points towards another reality, that contamination may actually be occurring at the retail outlet because infrastructure has not been comprehensively upgraded.
In other words, the problem, if these claims are correct, lies less with ethanol blending itself and more with the ability of existing fuel storage systems to safely handle higher ethanol blends. Or perhaps it is an attempt by petrol pump owners to shift the blame of pump-level contamination onto ethanol-blending instead of upgrading their infrastructure to ensure fuel sold to car users isn’t adulterated.
Dealers say awareness was discouraged
The anonymous petrol pump owners also claimed that oil marketing companies discouraged dealers from displaying boards informing customers that E20 petrol was being dispensed under government policy.
According to them, motorists should be made aware of precautions such as preventing water ingress into vehicle fuel tanks during heavy rain or while washing vehicles. However, they alleged that OMCs preferred not to highlight the presence of E20 at retail outlets.
Dealers further stated that they are instructed to inspect underground tanks multiple times every day using dipsticks coated with water-finding paste. During the monsoon, the frequency reportedly increases to once every two hours. Whenever contamination is detected, oil marketing companies are informed, following which personnel drain the water-rich layer from the tanks.
However, dealers complained that they bear the financial losses arising from contaminated stock, with some claiming to have discarded hundreds or even thousands of litres of fuel.
Indian Oil maintains zero-tolerance towards contamination
Indian Oil Corporation has rejected any suggestion that fuel contamination is being ignored.
The public sector oil major said it follows a zero-tolerance policy towards contamination and carries out regular inspections, surprise checks and scientific quality testing across retail outlets. It added that thousands of surprise inspections and quality tests are routinely conducted and strict action is initiated whenever contamination or adulteration is established.
Raipur consumer court order revives debate
The issue of contaminated fuel has also figured prominently in a recent consumer dispute decided by the District Consumer Disputes Redressal Commission in Raipur.
The commission directed Maruti Suzuki India to replace a customer’s Grand Vitara Strong Hybrid with a new E20-compatible vehicle after repeated breakdowns.
Dr Premraj Debta had purchased the SUV in June 2024. However, the vehicle had been manufactured in January 2023, months before the government’s April 2023 mandate requiring all newly manufactured petrol vehicles to be E20 compliant. In other words, although the customer bought the vehicle nearly 16–17 months after the nationwide transition towards E20-compatible manufacturing had begun, he was sold a vehicle produced before the mandate came into force.
Within months of purchase, the SUV reportedly began developing repeated stalling problems. According to the complaint, the authorised service centre cleaned the fuel tank several times after detecting contamination.
The complainant also submitted a laboratory report from a government-recognised facility stating that the fuel sample contained a white, curd-like substance identified as ethanol.
During the proceedings, however, the authorised Maruti dealership argued that the breakdowns were caused by poor-quality contaminated fuel, an external factor beyond the manufacturer’s warranty obligations. It denied the existence of any manufacturing defect.
The consumer commission eventually ruled that if the vehicle was not compatible with E20 petrol, the buyer should have been informed before purchase. Holding that failure to disclose this fact amounted to deficiency in service, it directed Maruti Suzuki to replace the vehicle within 45 days. Failing that, the company has been ordered to refund approximately Rs 20.5 lakh, besides paying Rs 1 lakh as compensation and Rs 10,000 towards litigation expenses.
Importantly, the commission did not conclude that E20 petrol itself damages vehicles. Rather, contaminated fuel once again featured prominently in the dispute.
Toyota had earlier reached a similar conclusion
The Raipur case closely mirrors Toyota’s response to the controversy surrounding YouTuber Manish Kashyap’s Innova Hycross.
After Kashyap uploaded videos alleging that his E20-compatible SUV had suffered severe engine problems due to ethanol-blended petrol, Toyota conducted a detailed technical inspection.
The company stated that the Innova Hycross was specifically designed, tested and certified for E20 fuel and that no component of the vehicle or its fuel system had suffered any damage because of ethanol blending.
Instead, Toyota concluded that the SUV had been affected by non-standard contaminated fuel. According to the company, the fuel tank and fuel lines were drained and cleaned before the vehicle was refilled with standard E20 petrol. Following this procedure, the vehicle was found to be functioning normally.
Toyota also advised customers to refuel only at authorised and reputed fuel stations to minimise the risk of contamination or adulteration.
A common thread emerging?
Taken together, the statements of petrol pump owners, the Raipur consumer dispute and Toyota’s technical findings all point towards one recurring issue, fuel contamination, not necessarily ethanol blending itself.
The petrol pump owners’ explanation offers a possible mechanism through which contamination may occur if underground storage infrastructure has not been adequately upgraded for E20 fuel. The Maruti dealership similarly attributed repeated breakdowns to contaminated fuel, while Toyota reached the same conclusion after inspecting Manish Kashyap’s Innova Hycross.
Whether these instances represent isolated operational failures or indicate a wider infrastructure challenge remains to be conclusively established. However, the focus of the debate increasingly appears to be shifting from whether E20 damages vehicles to whether India’s fuel storage and dispensing infrastructure has evolved quickly enough to prevent contamination and support the country’s ethanol-blending programme.
