What Sparked the Controversy?
The issue ignited when reports, originating from the newspaper 'The Bhutanese', claimed that the Himalayan kingdom had declined offers from Indian oil marketing companies (OMCs) to import E20 petrol. According to these reports, Bhutanese officials expressed
concerns over the country's existing fuel storage infrastructure, which they described as aged and not fully equipped to handle ethanol-blended fuel. The report was subsequently circulated widely, adding fuel to an ongoing domestic debate in India about the new standard petrol.
The Technical Concerns Voiced
The core of the reported Bhutanese concerns lies in basic chemistry and geography. Ethanol is hygroscopic, meaning it readily absorbs moisture from the atmosphere. Officials reportedly feared that in Bhutan's mountainous terrain, where water seepage into underground storage tanks can be common, this property could lead to fuel contamination. When water mixes with ethanol-blended fuel, it can cause a phenomenon known as phase separation, where the water-ethanol mixture settles at the bottom, affecting fuel quality. This could potentially lead to poor engine performance or even damage. Additionally, concerns were noted about E20’s lower energy density possibly impacting vehicle performance on steep roads.
India's Swift and Firm Rebuttal
In response, India’s Ministry of Petroleum and Natural Gas (MoPNG) issued a swift and unequivocal denial. Through an official “Fact Check,” the ministry stated that the claims of Bhutan declining an offer were “incorrect.” The government’s central argument is that no formal offer to export E20 petrol was ever made to Bhutan by Indian OMCs, and there is currently no proposal for such exports. Therefore, the premise of Bhutan “rejecting” an offer is, from the Indian government's perspective, without basis. The editor of The Bhutanese newspaper has publicly stood by the publication's reporting, stating it was based on official responses from Bhutan.
What Does This Mean for Indian Drivers?
While the India-Bhutan exchange plays out, the underlying technical questions resonate with some Indian consumers who have expressed their own anxieties about E20 petrol. Since the nationwide rollout, debates have emerged regarding the fuel's impact on mileage and the longevity of older vehicles. Automakers and industry experts have sought to reassure the public, stating that E20 was introduced only after extensive scientific testing. All vehicles sold since April 2023 are designed to be fully E20-compliant. For older, non-compliant vehicles, major manufacturers like Maruti Suzuki have stated that their tests showed no significant concerns regarding engine wear or corrosion. However, a minor drop in fuel efficiency of around 3-4% is an acknowledged trade-off due to ethanol's lower energy content compared to pure petrol.
The Bigger Picture: India’s Biofuel Bet
The strong defence of E20 is rooted in its strategic importance to India. The Ethanol Blending Programme (EBP) is a cornerstone of the nation’s energy security strategy, designed to reduce its heavy reliance on imported crude oil, lower carbon emissions, and boost incomes for farmers who grow the crops used for ethanol production, such as sugarcane and maize. Having achieved the E20 blending target well ahead of its original 2030 schedule, the government is already looking ahead. Plans are being discussed for higher blends like E25 and even E85 for flex-fuel vehicles, signalling that ethanol-blended petrol is not a temporary experiment but a long-term fixture of India's fuel landscape.
