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Govt Denies Reports of Bhutan Rejecting India's E20 Fuel

On Sunday, July 5, 2026, India's Ministry of Petroleum and Natural Gas denied reports that Bhutan rejected an offer to import E20 petrol, stating there is "no such proposal" to export the fuel.
Last week, The Bhutanese newspaper reported Bhutan declined Indian Oil Marketing Companies' offer to supply E20 petrol, citing concerns over the fuel's hygroscopic nature and potential leakage in Himalayan storage tanks.
Editor Tenzing Lamsang countered the denial, citing a written response from Bhutan's Department of Trade that requested normal petrol instead, though the document lacks the specific words "formal offer" or "proposal."
Bhutan's largest fuel distributor, Tashi BOD, stated its stations currently lack equipment to handle ethanol-blended fuel due to seepage issues, requesting advance notice if India shifts to fully ethanol-blended petrol.
The Ministry maintains that E20 is safe, noting millions of vehicles have operated on the fuel since April 1, 2025, without engine failure following extensive testing by India's leading technical institutions.

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A Bhutanese newspaper had reported that Bhutan had declined an offer from Indian Oil Marketing Companies to supply E20 petrol.

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Did Bhutan turn down India's E20 petrol? Centre issues clarification

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Govt denies reports of Bhutan rejecting India's E20 fuel

India's Petroleum Ministry has debunked claims that Bhutan rejected E20 petrol imports, stating no such offer was ever made. The ministry emphasized that reports suggesting otherwise are inaccurate and urged reliance on official sources. This clarification follows allegations by Congress regarding several neighboring countries refusing India's fuel. The government also reiterated that E20 fuel underwent extensive testing and is safe for vehicles…

8 days ago·Mumbai, India

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