Oil Companies Increase Water Checks to Protect E20 Petrol Quality

India’s major state-run oil marketing companies (OMCs) have introduced stricter measures to monitor and prevent water contamination in petrol pumps across the country. This move focuses on preserving the quality of ethanol-blended petrol, commonly referred to as E20, by requiring regular inspections of underground storage tanks and fuel dispensing nozzles.

The instructions apply to over 93,000 petrol stations managed by three leading OMCs: Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL). These firms have mandated that water contamination checks be carried out at intervals ranging from every two to eight hours, depending on the weather and operational shifts at each outlet.

IOC and HPCL have adopted a more frequent inspection schedule, with most retail locations conducting these checks every two to four hours. Meanwhile, BPCL has opted for a slightly relaxed timetable, requiring tests at least once every eight hours. This updated protocol was communicated to BPCL dealers on October 23 through a formal letter, which also included a revised standard operating procedure (SOP) for handling ethanol-blended motor spirit, the technical term for petrol.

The new guidelines specify that outlets operating 24/7 must perform a minimum of three water detection checks daily. Stations that function for fewer hours are required to conduct at least two such inspections each day. This enhanced vigilance is critical due to the nature of ethanol, the key blending component in E20 petrol. Ethanol is hygroscopic, meaning it has a tendency to absorb moisture from the environment. When water contaminates the fuel, it causes ethanol to separate from petrol, resulting in a distinct water-ethanol layer settling at the bottom of storage tanks. This phenomenon, known as phase separation, can degrade fuel quality and affect vehicle performance.

To detect water contamination effectively, dealers have been instructed to use alcohol-resistant water-finding paste on storage tanks. While the OMCs have not endorsed any specific brand, they have emphasized the importance of using reliable products available commercially for these tests.

Responsibility for maintaining fuel quality is shared between the oil companies and the retailers. According to the Marketing Discipline Guidelines issued by the three OMCs, fuel retailers and dealers are accountable for ensuring that contaminated or substandard fuel does not reach consumers. The oil companies themselves oversee the blending of ethanol into petrol in line with government mandates, while dealers must guarantee the fuel dispensed meets quality standards.

As of April 1, 2026, IOC operated 42,818 petrol pumps, BPCL managed 25,323, and HPCL ran 25,098 outlets. Additionally, private firms operated approximately 9,784 stations nationwide, based on official government figures.

India’s ethanol blending program has seen significant progress in recent years. The ethanol content in petrol rose from 14.6 percent in the 2023-24 supply year to 19.2 percent in 2024-25. The blending level is expected to reach 20 percent between November 2025 and March 2026, according to data from the Petroleum Planning and Analysis Cell.

The push for more frequent water contamination checks first emerged in July and was reinforced with a subsequent directive in late October. These measures come at a time when several regions of the country experienced rainfall, increasing the risk of water ingress into fuel storage systems.

By tightening inspection protocols, the oil marketing companies aim to maintain the integrity of ethanol-blended petrol, ensuring consumers receive fuel that meets quality standards while supporting India’s broader goals of cleaner energy and reduced carbon emissions through higher ethanol blends.