India’s push towards ethanol-blended fuel has met resistance from neighbouring Bhutan, which has declined offers from Indian Oil Marketing Companies (OMCs) to supply E20 petrol. Instead, the Himalayan nation has requested that India continue providing conventional petrol for as long as it remains available.
According to reports, Bhutan’s decision is largely driven by concerns over its ageing fuel storage infrastructure. Many of the country’s underground storage tanks are old and vulnerable to water seepage. Since E20 petrol contains 20% ethanol, it readily absorbs moisture from the surroundings, making it more susceptible to contamination than conventional petrol.
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Officials fear that if water enters storage tanks, the ethanol-blended fuel could become diluted, increasing the risk of corrosion in tanks and pipelines while also affecting engine performance. Bhutan’s humid climate and mountainous terrain further complicate fuel storage, as preventing condensation and moisture buildup is particularly difficult.
Another key concern is vehicle performance on steep roads. Bhutan believes vehicles operating in its hilly landscape require consistent engine output, and authorities are cautious about adopting a fuel that may affect performance under challenging driving conditions.
Bhutan imports all of its fuel from India, including higher-export quality petrol and diesel. While Indian OMCs such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum have offered E20 supplies, Bhutan’s Department of Trade has declined the proposal for now.
The country has requested advance notice if India plans to increase ethanol blending further and has also sought leak-proof storage tanks before considering any transition. Officials said accidental delivery of E20 fuel would be easy to identify because the fuel would turn milky if contaminated with even small amounts of water.
Bhutan’s decision highlights how fuel policies may need to be adapted to local geography, infrastructure and climatic conditions rather than applying a uniform approach across different regions.
