Image Source: X
Why Did Bhutan Reject India E20 Petrol Offer?: While E20 petrol is being promoted in India, the neighboring country of Bhutan has not yet accepted the proposal to source E20 fuel from India. Bhutan has requested that the supply of regular (pure) petrol continue as long as it remains available. This raises the question: why did Bhutan reject E20 when India is touting it as the fuel of the future? Let’s understand the situation in simple terms.
What is E20 Petrol?
E20 petrol is a fuel blend consisting of 20% ethanol and 80% petrol.
The Government of India's objective is to reduce dependence on imported crude oil, increase the utilization of ethanol procured from farmers, and curb pollution.
Why Did Bhutan Reject E20 Petrol?
According to a report by the local Bhutanese newspaper The Bhutanese, the country has requested India's Oil Marketing Companies (OMCs) to continue supplying regular petrol for the time being. Several practical reasons are being cited for this decision.
1. Old Fuel Storage Infrastructure
Many of Bhutan's petrol storage tanks are quite old and are located underground.
In such conditions, there is a higher risk of water seepage. Ethanol readily absorbs water; if moisture enters the fuel, its quality can be compromised.
This is considered to be Bhutan's primary concern.
2. Mountainous Terrain and Performance Concerns
Most of Bhutan's terrain is mountainous. Vehicles here frequently traverse high-altitude routes, where engine reliability and consistent performance are crucial.
For this reason, officials wish to exercise extra caution before adopting any new fuel.
3. Older Vehicle Compatibility
A large number of older vehicles are still in use in Bhutan.
Although the Indian government states that it is safe for E20-compatible vehicles, it is essential to consult the manufacturer's recommendations for older vehicles.
Consequently, Bhutan does not want to take any risks at this stage.
India's E20 Fuel Policy Explained
The Government of India has been aggressively advancing its ethanol blending program over the past few years.
Its objectives are to
- Reduce petrol imports
- Save foreign exchange
- Increase farmers' income
- Reduce carbon emissions
- Strengthen energy security
The government states that the fuel can be safely used in vehicles designed for E20.
Is E20 Petrol Safe for Older Vehicles?
This is the biggest question.
The straightforward answer is that it is "not the same for every vehicle."
If the vehicle manufacturer has approved the use of E20 fuel, there should generally be no issues.
However, owners of some vehicles manufactured before 2023 have expressed concerns regarding reduced mileage, increased maintenance costs, and potential impacts on the engine.
Meanwhile, the government and vehicle manufacturers maintain that its use is safe in vehicles compatible with E20. Therefore, consulting the guidelines issued by the vehicle manufacturer is the best approach.
Will Bhutan's Decision Impact India?
For now, this is not expected to have a significant impact on India's E20 policy.
Bhutan is a small market, and its decision is primarily driven by local circumstances. India is proceeding with its ethanol blending policy as planned.
Can Bhutan Adopt E20 Petrol in the Future?
The possibility cannot be ruled out.
If storage infrastructure improves, the fuel distribution system is upgraded, and technical trials yield satisfactory results, Bhutan might consider adopting E20 in the future.
Conclusion
Bhutan's decision not to accept India's E20 petrol proposal at this stage stems more from technical and infrastructure-related concerns than from any political dispute. Citing factors such as outdated fuel storage systems, hilly terrain, and the presence of older vehicles, Bhutan has requested the continued supply of regular petrol.
Meanwhile, India is pursuing goals such as energy security, pollution reduction, and increased farmer income through its ethanol blending policy. The situation could change in the future as technical improvements are made.
Frequently Asked Questions (FAQ)
What is E20 petrol?
Why did Bhutan not adopt E20 petrol?
Has E20 petrol been implemented in India?
Can all vehicles run on E20?




















