HF Sinclair Corp. distributed fuel batches contaminated with excessive water and particulate matter to at least 14 retail stations in the Denver metropolitan area, prompting emergency safety notices and regulatory scrutiny. The incident disrupted fuel supply chains and raised concerns about compliance with national fuel quality standards.
- 2.3 million gallons of gasoline were distributed with contamination levels exceeding ASTM D4814 standards
- Water content in some batches reached 0.5%, more than double the 0.25% threshold
- 14 Denver-area stations reported engine issues and fuel filter clogs
- HF Sinclair suspended terminal operations on January 9, 2026
- Colorado Department of Public Health and Environment initiated an investigation
- Company committed to upgraded filtration and biweekly third-party audits
HF Sinclair Corp. confirmed the distribution of multiple fuel shipments containing abnormal levels of water and sediment to 14 fuel stations across the Denver region in early January 2026. Internal testing revealed contamination levels exceeding the American Society for Testing and Materials (ASTM) D4814 standard for gasoline by up to 120% in some samples, with water content reaching 0.5%—more than double the permissible threshold of 0.25%. The affected stations, located in Aurora, Lakewood, and Westminster, reported engine performance issues, fuel filter clogging, and customer complaints within 48 hours of fuel receipt. The contamination stemmed from a failure in the filtration system at HF Sinclair’s Denver-area terminal, which processed crude oil from the Permian Basin before blending and distributing gasoline. The incident came to light after a routine quality audit by one of the retail partners flagged inconsistent fuel parameters. HF Sinclair immediately suspended all terminal operations on January 9 and initiated a full recall of the affected batches, which totaled approximately 2.3 million gallons. The company also notified the U.S. Environmental Protection Agency and the Colorado Department of Public Health and Environment. As of January 12, 2026, no injuries or vehicle breakdowns linked directly to the contaminated fuel had been reported, but the Colorado state fuel board launched an investigation into HF Sinclair’s quality control protocols. The Transportation Security Administration has also flagged the incident for review under national fuel supply integrity guidelines. Affected retailers reported a 30% drop in daily sales during the recall period due to consumer hesitation and station closures. The company has since committed to installing upgraded filtration units at the terminal and conducting biweekly third-party audits for the next six months. Market reactions were limited but notable: HF Sinclair’s shares dipped 3.7% in early trading on January 12, while regional fuel retailers saw slight volatility in their stock prices. The incident has spurred discussions about tightening oversight of midstream fuel handling operations, particularly in high-density urban areas.