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Home ›› Intl Trade ›› Import Export ›› Export Docs ›› Indian Government Denies Offering E20 Petrol Exports to Bhutan, Calls Reports Incorrect

Indian Government Denies Offering E20 Petrol Exports to Bhutan, Calls Reports Incorrect

The Indian Ministry of Petroleum and Natural Gas dismissed reports that Bhutan had refused to import E20 petrol from India, stating no such offer was ever made. The clarification followed allegations by the Congress party that Bhutan, Nepal, Bangladesh, and Sri Lanka had rejected India's ethanol-blended fuel. The government also defended the fuel's reliability, citing extensive testing by Indian institutions.

iG
iGEN Editorial
July 8, 2026
Indian Government Denies Offering E20 Petrol Exports to Bhutan, Calls Reports Incorrect

The Indian Ministry of Petroleum and Natural Gas (MoPNG) on Sunday denied reports that Bhutan had refused to import India's E20 petrol, stating that no such proposal had been made by the country's oil marketing companies (OMCs). The clarification came after claims surfaced in the media and on social platforms that Bhutan had declined an offer to purchase the ethanol-blended fuel.

Government Denial and Clarification

In a Facebook post, the MoPNG stated: "Fact Check: Claims that Bhutan declined an offer to import E20 petrol from India are incorrect. No such offer has been made by the Oil Marketing Companies (OMCs), and there is no proposal for export of E20 petrol to Bhutan. Please rely only on official information from MoPNG and the Oil Marketing Companies."

The ministry emphasized that reports of Bhutan rejecting an offer were factually baseless, as no export proposal had ever been communicated to Bhutanese authorities.

Background of Allegations

The denial came a day after the Congress party alleged that Bhutan, Nepal, Bangladesh, and Sri Lanka had refused India's fuel. In a post on X, Congress Kerala wrote: "Bhutan, Nepal, Bangladesh and Srilanka said no to Gadkari's Ethanol contaminated fuel. Only we Indians are left at the mercy of these idiots."

The Congress post referenced Union Minister Nitin Gadkari in connection with the ethanol blending program. The government has not responded directly to the allegations regarding other countries, focusing instead on the Bhutan claim.

Fuel Quality and Testing

Responding to broader concerns about E20 fuel performance, the Ministry of Information and Broadcasting (MIB) said the fuel was introduced only after extensive testing. The MIB stated: "E20 fuel was introduced only after extensive laboratory, vehicle, and field testing by India's leading technical institutions. Science led the way, ensuring reliability, performance, and confidence on every journey."

The government also clarified that vehicle manufacturers have aligned their vehicles with prescribed ethanol-blending standards. According to the MIB, the use of approved E20 fuel does not automatically void a manufacturer's warranty simply because ethanol-blended petrol is used.

Ethanol blending is described as a scientifically designed and internationally accepted fuel formulation implemented under India's Ethanol Blended Petrol Programme, including in countries such as Brazil. The ministry added that it is governed by established fuel quality standards and is not fuel adulteration.

The MIB further said that extensive testing by ARAI (Automotive Research Association of India), Indian Oil R&D, and IIP (Indian Institute of Petroleum) found no significant engine durability or performance issues with E20 in older vehicles. Millions of vehicles have been operating on E20 since the nationwide rollout on April 1, 2025, without any evidence of engine failure attributable to the fuel.

Summary of Key Claims and Clarifications

Claim Clarification Source
Bhutan declined an offer to import E20 petrol No such offer was made by OMCs; no export proposal exists MoPNG
Congress allegations that Bhutan, Nepal, Bangladesh, Sri Lanka refused E20 fuel Only Bhutan claim addressed; no response on other countries MoPNG via Facebook
E20 fuel causes engine issues Extensive testing by ARAI, Indian Oil R&D, IIP found no significant issues; no engine failure evidence since April 2025 rollout MIB
Using E20 voids vehicle warranty Use of approved E20 does not automatically void warranty MIB

For trade professionals, the denial confirms that no bilateral fuel export arrangement with Bhutan has been proposed, meaning no new market access for E20 through that route. The government's emphasis on testing and warranty protection aims to reassure domestic consumers and supply chain partners about the fuel's reliability.


Sources: Business-Today

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