Bhutan rejects Indian E20 petrol offer over storage risks

Bhutan has formally declined offers from Indian oil companies to supply E20 ethanol-blended petrol, citing significant concerns about its aging fuel storage infrastructure and the country's challenging Himalayan terrain. The decision was clarified by Bhutan's Department of Trade last week, according to local reports.

The Himalayan nation, which sources all its fuel from India, has requested that Indian Oil Marketing Companies (OMCs) continue supplying conventional petrol for as long as it remains available in the Indian market. Officials explained that the primary issue is the hygroscopic nature of ethanol, which readily absorbs moisture. Given the age and condition of many of Bhutan's underground storage tanks, some of which are very old and located in mountainous regions, there is a high likelihood of water seepage.

An official stated that if E20 fuel, which contains 20% ethanol, is stored in such tanks, the ethanol component would absorb water. This would dilute the fuel, alter its chemical composition, and could not be easily separated, ultimately degrading fuel quality. Authorities warned this scenario poses a high chance of major engine issues and could cause vehicles to...