India Issues Clarification on Reports Regarding E20 Petrol Supply to Bhutan
- MGMMTeam
- 1 day ago
- 3 min read
The Ministry of Petroleum and Natural Gas has stepped in to address recent media reports suggesting that Bhutan had rejected an offer to import India's E20 ethanol-blended petrol. The government has described these claims as incorrect, emphasising that no formal proposal for exporting the fuel was ever made by Indian Oil Marketing Companies.
This development highlights the complexities involved in cross-border fuel cooperation and the practical challenges of adopting advanced biofuel blends in varied geographical contexts.
Government Clarification
The Ministry of Petroleum and Natural Gas issued a clear fact-check, stating that India's Oil Marketing Companies had not made any offer to supply E20 petrol to Bhutan, nor was there any proposal under consideration for such exports. Officials urged all stakeholders to rely solely on verified information from the ministry and the OMCs.
This response came shortly after reports in Bhutanese media indicated a preference for continuing with conventional petrol supplies. The clarification aims to prevent misinformation and maintain transparency in bilateral energy matters.
Background of Bhutan's Reported Concerns
According to initial reports from Bhutanese sources, authorities expressed reservations about transitioning to E20 fuel primarily due to the country's existing fuel storage infrastructure. Many underground tanks are ageing and located in mountainous regions with high humidity, increasing the risk of water seepage.
Ethanol, being hygroscopic in nature, tends to absorb moisture more readily than conventional petrol. This property can potentially lead to fuel contamination, phase separation, and corrosion if storage conditions are not optimal. Bhutanese officials also pointed to the demanding terrain, where vehicles often require consistent power output on steep gradients, raising questions about performance reliability with the blended fuel.
As a nation that relies entirely on fuel imports from India, Bhutan reportedly requested advance notice for any future changes in fuel composition. This would allow time to upgrade storage facilities and ensure seamless compatibility across the supply chain.
India's Ethanol Blending Programme
India has made significant strides in its Ethanol Blended Petrol programme, achieving the 20% blending target (E20) in December 2025, well ahead of the original schedule. The initiative forms a key part of the country's strategy to enhance energy security, reduce dependence on imported crude oil, lower carbon emissions, and support agricultural incomes through expanded ethanol production from various feedstocks.
The nationwide rollout of E20 became mandatory at retail outlets from April 2026. Extensive testing has been conducted to ensure vehicle compatibility, with authorities noting marginal impacts on mileage alongside benefits in acceleration for suitable engines. The programme continues to evolve, with pilot projects for higher blends like E85 underway at select locations.
While the domestic implementation has sparked discussions on vehicle performance, particularly for older models, the government maintains that the blend aligns with global practices and scientific standards.
Regional Implications and Way Forward
The episode underscores the importance of infrastructure readiness when introducing new fuel technologies across borders. Differences in terrain, climate, and storage systems can influence adoption timelines, even among close neighbours. For Bhutan, any future transition would likely require investments in modern, leak-proof storage solutions and coordinated support from Indian suppliers.
This situation also presents an opportunity for enhanced technical collaboration between India and Bhutan to address shared energy goals while respecting each country's unique operational realities.
The MGMM Outlook
India's clarification reflects the importance of accuracy and transparency in discussions surrounding regional energy cooperation. As India continues expanding its ethanol blending programme to strengthen energy security and promote cleaner fuel adoption, it is equally important that developments involving neighbouring countries are communicated through verified official channels. Preventing misinformation helps preserve trust and reinforces the stability of long-standing bilateral partnerships.
The episode also highlights that the successful adoption of cleaner fuel technologies depends not only on policy ambitions but also on infrastructure readiness and local conditions. Regional cooperation in sustainable energy is likely to be more effective when supported by technical collaboration, gradual implementation, and mutual understanding of each country's operational requirements, enabling future transitions to take place in a practical and coordinated manner.
(Sources: India Today, LiveMint, Economic Times)