Bhutan Declines India's Ethanol-Blended Petrol Offer

Jul 4
1 min read

Bhutan has recently declined offers from Indian Oil Marketing Companies (OMCs) to supply E20 petrol—a blend of 20% ethanol and 80% petrol. This decision comes as India's E20 fuel mandate has sparked a widespread debate domestically, with many vehicle owners reporting reduced mileage, engine trouble, and increased maintenance costs, particularly in vehicles made before 2023.

The Himalayan nation's refusal is primarily rooted in its aging fuel storage infrastructure. Bhutan's fuel tanks are stored underground, and given the country's hilly terrain and high humidity, water seepage is a common issue. Ethanol is highly hygroscopic, meaning it readily absorbs moisture. If water contaminates the E20 fuel, it dilutes the mixture, turns the fuel milky, accelerates corrosion in tanks, and can lead to severe engine failure.

In addition to storage concerns, Bhutan’s steep and mountainous roads require vehicles to operate at maximum power. Authorities fear that the lower energy density of ethanol-blended petrol would not provide the consistent performance needed to safely navigate this challenging terrain. As a result, Bhutan has asked India to continue supplying unblended petrol for as long as possible.

Bhutan relies entirely on India for its fuel supply, currently purchasing higher-cost, export-quality petrol and diesel. The Bhutanese government has requested advance notice from Indian OMCs if India transitions entirely to ethanol blends. This would allow them time to upgrade to modern, leak-proof storage tanks before they are forced to adapt to the changing fuel landscape.

SOURCE