Here is information on ethanol issues in fuel that is the most likely cause of rusting in the fuel tank.
Ethanol Issues in Fuel Ethanol can soften hoses and gaskets, dissolve your carburetor float and other plastic parts, and corrode metal.
Ethanol, created by blending gasoline and ethyl alcohol, is added to gasoline to make an environmentally friendly product and to help conserve fuel resources. Ethyl alcohol is grain alcohol that has been used in vehicles since the 1970s. In recent years, ethanol has been shown to cause problems in small engines, such as those found in ATVs, recreational watercrafts, boats and lawnmowers, and consumer warnings have been issued by some manufacturers.
Phase Separation - Consumer Affairs reports that ethanol fuel is particularly harmful to some vehicles, especially boats, because of a process known as phase separation. Phase separation occurs because ethanol attracts and binds with water. When ethanol absorbs too much water, the ethanol and water separate from the gasoline, leaving behind a layer of water that can seriously damage an engine when the vehicle attempts to burn fuel. Lawnmower manufacturer Briggs and Stratton does not recommend leaving ethanol fuel in engines for more than 30 days without adding fuel stabilizer to the engine.
Potential Engine Corrosion - The alcohol content in ethanol could cause engine corrosion. Ethanol gasoline has been known to break down engine seals, dissolve fiberglass gas tanks in boats and destroy plastics. Over time, ethanol's corrosive properties can lead to engine failure, especially if corrosion winds up in the engine causing clogs and fuel blockage. Due to emission controls the carburetors are now manufactured with smaller passages than in the past.
Storage Storing for the winter – run the tank dry or store with fuel? That's an important question. Visit any repair shop and you'll see the problems that E10 gasoline—which is actually 10 percent ethanol—can cause in small air-cooled engines. The alcohol in the fuel dissolves plastic and rubber parts in the fuel system. It also attracts moisture. which leads to corrosion of metal parts. And even if the engine escapes damage, it experiences a loss of performance from chemically degraded fuel, because ethanol-based gasoline can spoil rapidly, often separating into layers of alcohol and fuel
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