The Ministry of Petroleum and Natural Gas has denied reports claiming that Bhutan rejected a proposal to import E20 petrol from India, saying that no such proposal was ever made.
In its clarification, the ministry stated that no Indian oil marketing company has offered E20 petrol exports to Bhutan and that the media reports circulating on the matter are incorrect. It also urged people to rely only on information released by the ministry and authorised oil companies.
The clarification came after reports suggested that Bhutan wanted India to continue supplying conventional petrol instead of ethanol-blended fuel because of concerns related to infrastructure and operational needs.
According to those reports, Bhutan had informally expressed a preference for regular petrol, mainly due to practical challenges. One of the major concerns was the country’s ageing fuel storage facilities, especially underground tanks, which may not be suitable for storing ethanol-blended fuel.
Since ethanol-blended petrol absorbs moisture more easily than conventional fuel, there are worries that older storage systems could affect fuel quality if water enters the tanks. This, in turn, might create problems for vehicle engines. Reports also indicated that Bhutan wanted improved, leak-proof storage infrastructure before considering any shift to higher ethanol blends.
Bhutan’s mountainous landscape was another factor reportedly influencing its position. With vehicles travelling on steep and difficult roads, maintaining fuel reliability and consistent engine performance remains important for the country.
At present, Bhutan depends entirely on India for its fuel supply, including petrol and diesel meant specifically for export. Any future changes in fuel composition would therefore have a direct impact on its transport system, vehicle fleet and storage facilities.
Some reports further claimed that Bhutan had requested advance notice if India decides to introduce fuels with a higher percentage of ethanol, giving the country enough time to upgrade its infrastructure and adapt accordingly.
The discussion has also brought attention to India’s ethanol-blending programme. E20 petrol, which contains 20 per cent ethanol and 80 per cent petrol, is a key part of the government’s efforts to reduce dependence on fossil fuels, cut emissions and promote cleaner energy.
However, the move has sparked debate among vehicle owners, especially those with older models. While some have raised concerns about mileage, maintenance and engine compatibility, the government has said that any reduction in fuel efficiency would be minimal and that E20 is expected to improve engine performance while supporting environmental goals.
India is also exploring higher ethanol blends, including E25, as part of its broader clean energy plans. The ongoing discussion highlights the need to consider different geographical and infrastructural conditions when implementing such transitions.