Guwahati: Bhutan has declined an offer from Indian Oil Marketing Companies (OMCs) to supply E20 petrol, opting instead to continue importing conventional petrol from India, citing concerns over ageing fuel storage infrastructure and the suitability of ethanol-blended fuel for the country’s terrain.
According to a report by The Bhutanese, Bhutan has requested India to continue supplying normal petrol for as long as it remains available in the Indian market.
The Bhutanese government said its existing underground fuel storage tanks are not designed to handle ethanol-blended petrol. Experts warned that the ageing tanks are vulnerable to water seepage, which could compromise fuel quality because ethanol readily absorbs moisture.
“Considering the existing condition and quality of several of the underground storage tanks, the import and handling of ethanol-blended fuel may pose challenges in ensuring fuel quality,” the government was quoted as saying.
Bhutan’s mountainous terrain was also cited as a factor. Authorities believe vehicles operating on steep roads require consistent engine performance, and have expressed concerns about the suitability of E20 fuel under such conditions.
Bhutan imports all its fuel from India and currently purchases export-grade petrol and diesel supplied by Indian OMCs, including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
The report said Bhutan has requested advance notice if India moves to higher ethanol blends or fully ethanol-based petrol in the future. It has also sought leak-proof fuel storage tanks to facilitate any eventual transition.
India has been rolling out E20 petrol as part of its ethanol-blending programme aimed at reducing crude oil imports and lowering emissions. The policy has drawn criticism from some vehicle owners, particularly those with older petrol vehicles, over concerns relating to fuel efficiency and maintenance.