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Brendan McKay
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Two people answered that the Petersen graph is a counterexample. They are correct, but it is more interesting to note that any cubic graph with $4k+2$ vertices is a counterexample. The contracted graph has $2k+1$ vertices an $4k+2$ edges. Each edge colour can appear on at most $k$ edges so at least 5 colors are needed.

Brendan McKay
  • 37.7k
  • 3
  • 80
  • 147