Why Bhutan Rejected E20 Petrol Despite India's Nationwide Rollout

Bhutan has declined E20 petrol, citing ageing fuel tanks and water contamination risks. It has asked India to continue supplying regular petrol until its storage infrastructure is upgraded.

Bhutan has declined E20 petrol, citing ageing fuel tanks and water contamination risks.

Source : X

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Key points generated by AI, verified by newsroom

• Bhutan declined importing India's E20 petrol due to concerns.
• Ageing fuel tanks risk water contamination, potentially damaging engines.

Bhutan has decided not to import E20 petrol, citing concerns over fuel storage infrastructure and the risk of contamination, even as India has rolled out the 20 per cent ethanol-blended fuel as the standard grade nationwide.

The clarification came from Bhutan's Department of Trade after questions were raised over whether the country was also importing ethanol-blended petrol from Indian suppliers such as Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), which are Bhutan's primary fuel suppliers.

Bhutan Says Fuel Tanks Not Ready For E20

According to The Bhutanese publication, Bhutan continues to import conventional motor spirit (petrol) and has declined offers from Indian oil marketing companies to switch to E20.

Officials explained that ethanol-blended petrol is hygroscopic, meaning it readily absorbs water due to the presence of a hydroxyl (-OH) group. Once contaminated, the water cannot be easily separated from the fuel, potentially affecting fuel quality and vehicle performance.

The department said Bhutan's ageing underground fuel storage tanks, combined with the country's mountainous terrain, increase the likelihood of water seepage. Under such conditions, ethanol in E20 could absorb moisture, dilute the fuel and alter its chemical composition, raising the risk of engine damage and vehicle breakdowns.

Commenting on the issue, the editor of a Bhutanese newspaper said in a post on X that many of the reported problems were likely linked to improper storage rather than the fuel itself.

"A lot of E20 fuel issues in India are probably linked to improper storage of the fuel. Even a small amount of water can change the composition of the fuel as the ethanol blends well with water. Bhutan has said no to E20 for now precisely because our fuel tanks are not ready," the editor wrote.

Bhutan Requested To Supply Regular Petrol

Bhutan has requested Indian public sector oil companies to continue supplying regular petrol for as long as it remains available in India.

The department also said that if India eventually moves to higher ethanol blends or fully ethanol-based petrol, Bhutan should be informed well in advance so fuel dealers can upgrade underground storage tanks and fuel handling systems to safely accommodate ethanol-blended fuels.

Officials noted that if E20 were accidentally supplied to Bhutan, contamination would likely become visible because the fuel would turn milky upon absorbing even a small amount of water.