New Delhi, July 5, 2026
The Centre on Sunday rejected media reports claiming that Bhutan turned down an Indian proposal to import E20 petrol, clarifying that no such offer was made by Indian Oil Marketing Companies (OMCs) and that there is no proposal to export the fuel to the neighbouring country.
“Claims that Bhutan declined an offer to import E20 petrol from India are incorrect,” the ministry said.
“No such offer has been made by the Oil Marketing Companies (OMCs), and there is no proposal for export of E20 petrol to Bhutan,” it added.
The clarification came after media reports claimed that Bhutan had declined an Indian proposal to supply E20 petrol due to concerns over fuel storage infrastructure and the compatibility of vehicles with higher ethanol-blended fuel.
The reports, citing Bhutanese officials, said the country had requested Indian OMCs to continue supplying conventional petrol instead of E20, pointing to technical and infrastructure-related challenges.
According to the reports, Bhutan’s concerns were linked to the hygroscopic nature of ethanol, which absorbs moisture more readily than conventional petrol. Officials were reported to have expressed apprehension that ageing underground fuel storage tanks in the country’s mountainous terrain could be susceptible to water seepage, increasing the risk of phase separation. Such a development, the reports said, could affect fuel quality and potentially damage vehicle engines.
However, the Centre categorically denied the claims, reiterating that Indian OMCs had not made any proposal to export E20 petrol to Bhutan. It said reports suggesting that Bhutan had rejected such an offer were without basis.
India’s E20 petrol programme, which blends 20 per cent ethanol with petrol, is a key component of the government’s strategy to reduce dependence on crude oil imports, lower vehicular emissions and promote domestic biofuel production. As part of the nationwide rollout of cleaner fuels, E20 petrol is now available across the country.(Agency)
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