Petroleum Ministry Denies Offering E20 Petrol Export to Bhutan

On July 5, 2026, India's Ministry of Petroleum and Natural Gas in New Delhi refuted reports claiming that Bhutan had declined an offer to import E20 petrol from India, clarifying that no such export proposal or offer was ever made by Indian Oil Marketing Companies.

The ministry's clarification came in response to a report published by a Bhutanese newspaper, which claimed the Bhutanese government had rejected the E20 ethanol-petrol blend due to concerns over fuel contamination, storage, and vehicle performance. The report stated that Bhutan had instead requested Indian oil companies to continue supplying regular petrol.

In a social media post, the Ministry of Petroleum and Natural Gas labelled the claims incorrect. The ministry stated that no offer has been made by the Oil Marketing Companies (OMCs) and there is no active proposal for exporting E20 petrol to Bhutan.

However, Tenzing Lamsang, the Editor of The Bhutanese newspaper, stood by the report and shared a written response from the Bhutanese government’s Department of Trade. According to the document shared by Lamsang, the Department of Trade had requested Indian OMCs to continue supplying normal petrol as long as it remains available in the Indian market.

The document cited by the journalist raised technical concerns regarding the E20 blend, stating that water contamination in ethanol-blended fuel is difficult to separate and could affect fuel quality and vehicle performance. It also noted that Bhutan's existing underground storage tanks could face challenges in ensuring fuel quality.

The Indian government has defended its Ethanol Blending Programme, which began in 2023, stating that the program is scientifically validated and monitored. The ministry has previously dismissed claims of widespread engine damage or vehicle breakdowns linked to the E20 fuel blend, asserting that the rollout followed extensive technical evaluations and consultations with car manufacturers and scientists.