July 5, 2026 at 06:33 PM 2 min readindiadeveloping

Oil Ministry Rejects Claims on E20 Petrol Exports to Bhutan

Ministry Clarification:

The Indian Ministry of Petroleum and Natural Gas (MoPNG) has officially dismissed reports suggesting that Bhutan refused an offer to import India's E20 ethanol-blended petrol. In a statement released through its social media channels, the ministry clarified that no such export proposal had been made by Indian oil marketing companies (OMCs) to the Himalayan nation. The ministry urged the public and media to rely solely on official communications regarding the distribution of ethanol-blended fuels.

Controversy Origins:

The confusion originated from a report by the Bhutanese news publication, 'The Bhutanese,' which claimed the Bhutanese government had requested a continued supply of regular petrol instead of E20 due to infrastructure and handling concerns. The report cited potential risks such as ethanol’s hygroscopic nature, which could affect fuel quality and storage tank integrity. These claims were subsequently amplified by political groups in India to challenge the Centre’s E20 rollout policy.

Broader E20 Debate:

The dispute arrives amidst ongoing domestic scrutiny of India’s ethanol blending program, which aims to reduce crude oil imports and support sugarcane farmers. While some motorists have expressed concerns regarding vehicle performance and engine maintenance with E20 fuel, both the government and automotive industry have maintained that the fuel has passed extensive testing and meets international standards. Protesters in Delhi recently demanded an independent review and the retention of non-blended fuel options for consumers.
Pulse Intelligence
AI Analysis
  • India accelerated its E20 ethanol-blended petrol rollout in 2025 as part of its energy security strategy.
  • The government has consistently defended the E20 programme against claims of poor mileage and engine damage.
  • Expect the government to increase its communication efforts to address public concerns regarding E20 performance.
  • The energy department will likely continue monitoring cross-border fuel supply logistics to maintain regional stability.

No direct market impact.