Did Bhutan Really Reject India's E20 Petrol Proposal? Here's the Truth!

The Indian government has refuted claims that Bhutan declined an offer to import E20 petrol, clarifying that no such proposal was ever made. Concerns regarding fuel storage and vehicle compatibility were cited in media reports, but officials emphasized that these claims lack basis. The E20 petrol initiative aims to reduce India's reliance on crude oil and promote biofuel production. This article delves into the details of the government's clarification and the implications for fuel supply between India and Bhutan.

By Narendra Chaudhary Jul 5, 2026, 15:58 IST

Clarification from the Centre on E20 Petrol Export to Bhutan

New Delhi: On Sunday, the Indian government dismissed reports suggesting that Bhutan had rejected a proposal to import E20 petrol, clarifying that no such offer was ever made by Indian Oil Marketing Companies (OMCs).

The ministry stated, "Reports claiming that Bhutan turned down an offer to import E20 petrol from India are inaccurate."

It further emphasized, "No proposal has been presented by the Oil Marketing Companies for the export of E20 petrol to Bhutan."

This clarification followed media claims that Bhutan declined the proposal due to concerns regarding fuel storage capabilities and the compatibility of vehicles with higher ethanol content.

According to these reports, Bhutanese officials had requested that Indian OMCs continue supplying traditional petrol instead of E20, citing technical and infrastructure challenges.

The reports indicated that Bhutan's concerns were related to the hygroscopic properties of ethanol, which can absorb moisture more easily than standard petrol. Officials expressed worries that the aging underground fuel storage tanks in the mountainous regions of Bhutan could be vulnerable to water infiltration, raising the risk of phase separation. Such an occurrence could compromise fuel quality and potentially harm vehicle engines.

Nevertheless, the Centre firmly rejected these claims, reiterating that Indian OMCs had not proposed exporting E20 petrol to Bhutan. It stated that reports suggesting Bhutan had declined such an offer were unfounded.

India's E20 petrol initiative, which incorporates 20% ethanol into petrol, is a vital part of the government's plan to decrease reliance on crude oil imports, reduce vehicle emissions, and encourage domestic biofuel production. E20 petrol is now being rolled out nationwide as part of the transition to cleaner fuels.