Government fact-checks reports of Bhutan rejecting India's E20 petrol offer

E20 petrol row: The clarification comes days after a report in The Bhutanese claimed that the Bhutan government had asked India to continue supplying conventional petrol for as long as it remained available in the Indian market.

In Short

• Bhutan cites ageing underground tanks as a risk for ethanol-blended fuel
• Officials warn water seepage could contaminate blended petrol stored underground
• Government says there are no plans to export E20 to any country, including Bhutan

The Ministry of Petroleum and Natural Gas has dismissed reports claiming that Bhutan rejected a proposal to import E20 fuel from India, calling them "incorrect".

The ministry clarified that no such offer has been made by India's Oil Marketing Companies (OMCs) and that no proposal to export E20 petrol to Bhutan has been formalised so far.

"Please rely only on official information from the ministry and the OMCs," the government said in a press note.

The clarification comes days after a report in The Bhutanese claimed that the Bhutan government had asked India to continue supplying conventional petrol for as long as it remained available in the Indian market.

Bhutanese authorities told the publication that the country's inadequate and ageing fuel storage infrastructure is not equipped to handle ethanol-blended petrol. They also cited Bhutan's mountainous terrain, saying vehicles require maximum power and expressing concerns that E20 may not deliver the consistent performance needed on steep roads.

"Considering the existing condition and quality of several of the underground storage tanks, the import and handling of ethanol-blended fuel may pose challenges in ensuring fuel quality," a Bhutan government official told The Bhutanese.

The official added that because the storage tanks are underground, there is a higher risk of water seepage, which could contaminate ethanol-blended fuel.

Notably, Bhutan imports the higher export-grade petrol and diesel supplied by India, which is more expensive than the fuel sold at Indian retail outlets.

Bhutan's reported position came at a time when India's E20 petrol rollout has sparked widespread debate and protests over its impact on vehicle performance.

In India, the introduction of E20 petrol — a blend of 20% ethanol and 80% petrol — has drawn criticism, particularly from owners of petrol vehicles manufactured before 2023. Many have reported reduced fuel efficiency, higher maintenance costs and increased engine wear and tear.

While the government has acknowledged that E20 may marginally reduce fuel efficiency, it maintains that the blend offers better acceleration and overall engine performance.

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