The Centre has rejected media reports claiming that Bhutan turned down an Indian proposal to import E20 petrol, clarifying that no such offer was ever made by Indian Oil Marketing Companies (OMCs) and that there is no proposal to export E20 petrol to the neighbouring country.
In a statement posted on X, the Ministry of Petroleum and Natural Gas (MoPNG) described the reports as "incorrect", stating that "no such offer has been made by the OMCs, and there is no proposal for export of E20 petrol to Bhutan."
The clarification came after reports suggested Bhutan had declined an Indian proposal over concerns related to its fuel storage infrastructure and the compatibility of higher ethanol-blended fuel.
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The reports, which cited Bhutanese officials, claimed that the country had requested Indian OMCs to continue supplying conventional petrol instead of E20 fuel due to technical and infrastructure-related constraints.
According to the reports, Bhutan's concerns centred on the hygroscopic nature of ethanol, which absorbs moisture more readily than conventional petrol. Officials reportedly feared that ageing underground fuel storage tanks in the country's mountainous terrain were vulnerable to water seepage, increasing the risk of phase separation that could affect fuel quality and potentially damage vehicle engines.
However, the Centre categorically dismissed the reports, reiterating that no proposal to export E20 petrol to Bhutan had been made by Indian OMCs. The government emphasised that claims of Bhutan rejecting such an offer were unfounded.
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India's E20 petrol programme, which blends 20 per cent ethanol with petrol, forms a key part of the government's strategy to reduce dependence on crude oil imports, lower vehicle emissions and promote domestic biofuel production.
Containing 20 per cent ethanol, E20 petrol is now available nationwide as part of India's shift towards cleaner fuels.
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