New Delhi | Updated: July 5, 2026
The Ministry of Petroleum and Natural Gas has dismissed reports claiming that Bhutan rejected a proposal to import E20 petrol from India.
The ministry called the reports incorrect and clarified that no such offer had been made by India’s oil marketing companies.
It also said that no proposal to export E20 petrol to Bhutan has been formalized so far.
The government, in a press note, advised people to rely only on official information issued by the ministry and oil marketing companies.
The clarification came days after a report in The Bhutanese claimed that the Bhutan government had asked India to continue supplying conventional petrol for as long as it remained available in the Indian market.
According to the report, Bhutanese authorities cited inadequate and aging fuel storage infrastructure as a concern in handling ethanol-blended petrol.
The report also said Bhutan’s mountainous terrain was another factor, as vehicles require consistent power while traveling on steep roads.
A Bhutan government official quoted in the report said the condition and quality of several underground storage tanks could make the import and handling of ethanol-blended fuel challenging.
The official also reportedly said that underground tanks carry a higher risk of water seepage, which could contaminate ethanol-blended fuel.
Bhutan currently imports higher export-grade petrol and diesel supplied by India. This fuel is costlier than the petrol and diesel sold at Indian retail outlets.
The clarification comes at a time when India’s E20 petrol rollout has triggered debate over its impact on vehicle performance.
E20 petrol is a blend of 20 percent ethanol and 80 percent petrol.
In India, several owners of petrol vehicles manufactured before 2023 have raised concerns over reduced fuel efficiency, higher maintenance costs, and possible engine wear and tear.
The government has acknowledged that E20 may lead to a marginal reduction in fuel efficiency. However, it has maintained that the blend offers better acceleration and overall engine performance.
With the ministry’s clarification, the government has denied that any formal E20 petrol export proposal was made to Bhutan.
