The Ministry of Petroleum and Natural Gas has dismissed media reports that Bhutan rejected a proposal to import E20 petrol from India, saying no such proposal has been made and calling the reports “incorrect.” In an official clarification, the ministry said no Indian oil marketing company has offered to export E20 and that no formal proposal on the matter currently exists, urging the public and media to rely only on verified information from the ministry and authorised oil companies.
The clarification was issued after reports suggested Bhutan had asked India to continue supplying conventional petrol rather than ethanol-blended fuel, citing concerns about the Himalayan kingdom’s fuel infrastructure and operational needs. According to those reports, Bhutan’s preference was described as practical rather than a policy disagreement.
Among the issues reportedly raised were ageing storage systems-particularly underground tanks-that may not be suitable for ethanol-blended petrol. Ethanol-blended fuels can absorb moisture more readily than conventional petrol, and in older or leak-prone storage systems moisture ingress can degrade fuel quality and risk engine problems if contamination occurs. Reports said Bhutan has sought improved, leak-proof storage before considering any higher ethanol blends.
Bhutan’s mountainous terrain and challenging transport routes were also cited as factors shaping its cautious approach. Officials were reported to emphasise the need for consistent vehicle performance and fuel reliability under steep and difficult road conditions, concerns that could affect both public transport and freight operations.
Bhutan currently depends entirely on fuel imports from India, including higher-grade petrol and diesel supplied for export. Any change in the fuel supplied would therefore have implications for the country’s vehicle fleet, storage infrastructure and logistics, the reports noted. They also said Bhutan had asked for advance notice if India moves towards supplying fuels with higher ethanol content so there would be time to upgrade infrastructure.
The debate ties into India’s broader ethanol-blending programme. E20 petrol-20 percent ethanol and 80 percent petrol-is a central part of the government’s strategy to cut fossil fuel reliance, reduce emissions and promote cleaner energy. The nationwide rollout has prompted discussion among vehicle owners, especially those with older cars, over fuel efficiency, maintenance costs and engine compatibility. The government has acknowledged a possible marginal reduction in mileage but maintains E20 should improve engine performance and advance environmental goals. India is also reported to be evaluating higher blends, including E25, underscoring the need to account for varied geographic, climatic and infrastructural conditions when planning fuel transitions.
Original Source: https://www.indiatodayne.in/national/story/centre-rejects-reports-claiming-bhutan-declined-indias-e20-fuel-proposal-1419176-2026-07-05?utm_source=rssfeed
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Publish Date: 2026-07-05 17:03:00
