Petrol sales have been stopped at 2,573 fuel outlets across the country as the government intensifies quality checks across the distribution network amid concerns over contamination in ethanol-blended petrol, according to a report. The outlets where sales have been halted include 1,257 operated by Indian Oil Corporation, 915 belonging to Hindustan Petroleum Corporation and 401 under Bharat Petroleum Corporation, Autocar India reported, citing Petroleum Ministry sources. The figure is as of August 25.
The action is part of a much wider inspection and testing exercise covering petrol pumps, storage facilities, tankers and other parts of the fuel supply chain. The scrutiny follows weeks of debate over the quality of E20 petrol after automobile manufacturers' internal tests reportedly raised concerns about unusually high levels of chloride and moisture in some samples.
The Society of Indian Automobile Manufacturers had written to the Petroleum Ministry on July 28 flagging the issue, but subsequently withdrew the communication, saying the findings required further verification. The government and state-owned oil companies have maintained that their own testing does not support claims of widespread contamination. Earlier this month, the Petroleum Ministry said an intensive nationwide exercise found fuel quality broadly within prescribed specifications and that there was no reason for motorists to be alarmed.
Checks intensified at pumps
A key focus of the latest drive is preventing water from entering underground fuel tanks, particularly during the monsoon. Water-ingress tests are now being conducted between eight and 12 times daily at nearly 89,000 retail outlets.
Audits have covered more than 84,000 fuel stations, with particular attention being paid to older outlets and the condition of underground storage infrastructure. Automated monitoring systems and probes are operational at more than 85,000 pumps, while defective equipment is being taken up for repairs.
Checks have also moved further up the supply chain. Oil marketing companies have carried out thousands of sulphur tests and more than 1,000 chloride tests on tankers transporting ethanol. Storage tanks operated by the companies are also being tested for chloride contamination.
The scale of the exercise represents a significant tightening of oversight as the Centre seeks to address consumer concerns without allowing questions over fuel quality to derail its ethanol-blending programme.
Carmakers had raised concerns
Concerns intensified after internal testing by automobile manufacturers reportedly detected high chloride and moisture levels in fuel samples from parts of the country.
According to the Autocar report, Maruti Suzuki, Tata Motors and Mahindra & Mahindra collectively examined more than 250 samples gathered from pumps across 21 states and Union Territories over roughly a year. Some samples reportedly showed chloride concentrations far above the levels used as a benchmark in the fuel supply system.
Mahindra has disputed conclusions drawn from internal communications concerning the issue, describing the underlying information as preliminary and limited.
The government, meanwhile, has presented a different picture based on testing conducted by oil marketing companies. An August 8 official statement said additional checks at refineries found chloride at or below 1 part per million, while ethanol sampled from 80 distilleries was below 3 ppm. Samples from terminals were also reported below that level.
Officials said isolated cases where elevated chloride was found were immediately dealt with and supplies were restored only after corrective measures.
E20 rollout under scrutiny
The quality debate has emerged as India pushes ahead with E20 petrol, which contains 20 per cent ethanol. The programme is intended to lower dependence on imported crude, support domestic ethanol production and reduce emissions.
Motorists and sections of the automobile industry have, however, raised questions about fuel economy, compatibility of older vehicles and the possible effect of contaminants on fuel-system components.
The issue has also highlighted a regulatory gap over chloride. While strict specifications apply to ethanol entering the blending system, reports have pointed to the absence of a corresponding statutory BIS threshold specifically governing inorganic chloride in finished E20 petrol. The government is now considering tighter, binding requirements across the fuel ecosystem.
The latest nationwide inspections indicate that enforcement is increasingly shifting from testing alone to action at the retail level, with sales being stopped where outlets fail to meet prescribed requirements.
For the government, the challenge is now twofold: ensuring that E20 reaching motorists consistently meets quality standards while restoring confidence in an ethanol programme that has become a central part of India's fuel strategy.