Petrol dealers claim ethanol's hygroscopic nature contaminates E20 fuel, causing vehicle issues

Petrol pump owners are reporting that the hygroscopic nature of ethanol is leading to contamination of E20 fuel, particularly during monsoons and in coastal areas. This occurs because existing underground storage tanks, designed for conventional petrol, allow water ingress. When water content exceeds 0.5%, ethanol binds with water, causing phase separation where a water-ethanol mixture settles at the bottom, leading to vehicles being dispensed contaminated fuel. This results in vehicle malfunctions, financial losses for dealers, and concerns about corrosion of mild steel tanks. Dealers also noted that Oil Marketing Companies (OMCs) discouraged displaying informational boards about E20 issues.

Key Points

  • Ethanol's hygroscopic nature causes E20 fuel contamination, especially in monsoons and coastal areas.
  • Water ingress in underground tanks leads to phase separation, resulting in contaminated fuel being dispensed.
  • Contaminated E20 fuel can cause vehicle malfunctions, poor driveability, and engine damage.
  • Petrol pump owners face financial losses from contaminated fuel and fear corrosion of mild steel tanks.
  • Oil Marketing Companies (OMCs) reportedly discouraged dealers from displaying informational boards about E20 issues.

Exam Facts

  • Fuel type: E20 (20% ethanol blend).
  • Property of ethanol: Hygroscopic (affinity towards water).
  • Threshold for phase separation: 0.5% water content.
  • Entities involved: Petrol pump owners, Oil Marketing Companies (OMCs).

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All current affairs of 17 July 2026