Centre brushes off media reports on Bhutan rejecting E20 petrol proposal, says no export offer was made
New Delhi, July 5: The Ethanol Blended Petrol (EBP) Programme has emerged as a key pillar of India’s energy transition and biofuel strategy, which has saved the country’s foreign exchange by reducing crude oil imports, lowered greenhouse gas emissions, and strengthened farmers’ incomes through new market opportunities, according to a government factsheet issued on Sunday.
From 2014-15 up to May 2026, the ethanol blending programme has resulted in a saving of over Rs 1.90 lakh crore in foreign exchange by substituting 310 lakh metric tonnes of imported crude oil and has generated additional earnings for farmers of more than Rs 1.6 lakh crore. Besides, it has cut carbon emissions of over 930 lakh metric tonnes, the factsheet states.
The factsheet highlights that India imports close to 88.5 per cent of the crude oil it consumes, which explains a great deal about why ethanol blending sits so high on the policy agenda. Every barrel of oil bought from abroad exposes the country to price swings and supply shocks that are entirely outside its control. Ethanol produced from Indian sugarcane, maize and rice offers a way to blunt that exposure using resources grown at home, the factsheet stressed.
The factsheet also highlights that ethanol blending is now a globally accepted practice with several major economies including the US, Brazil and Japan implementing the programme.
In the United States, E10 is the standard ethanol blended fuel nationwide, while E15 is expanding rapidly, backed by the US government. Millions of vehicles are already flex fuel capable. These can run on blends as high as E85.
Brazil remains the global leader in ethanol use. It currently mandates E27 as its standard petrol blend. This is being raised further to around 35 per cent. Over 80 per cent of new cars sold are flex fuel vehicles. These run on E27, E30, or pure hydrous ethanol.
Japan has brought ethanol into its fuel mix too. This was done through a phased E10 rollout.
Besides, countries including Canada, Thailand, and several European nations have also adopted ethanol blending as part of their clean fuel strategies, the factsheet added.
Reports on E20 proposal to Bhutan dismissed
The Centre on Sunday rejected media reports claiming that Bhutan turned down an Indian proposal to import E20 petrol, clarifying that no such offer was made by Indian Oil Marketing Companies (OMCs) and that there is no proposal to export the fuel to the neighbouring country.
“Claims that Bhutan declined an offer to import E20 petrol from India are incorrect,” the ministry said.
“No such offer has been made by the Oil Marketing Companies (OMCs), and there is no proposal for export of E20 petrol to Bhutan,” it added.
The clarification came after media reports claimed that Bhutan had declined an Indian proposal to supply E20 petrol due to concerns over fuel storage infrastructure and the compatibility of vehicles with higher ethanol-blended fuel.
The reports, citing Bhutanese officials, said the country had requested Indian OMCs to continue supplying conventional petrol instead of E20, pointing to technical and infrastructure-related challenges.
According to the reports, Bhutan’s concerns were linked to the hygroscopic nature of ethanol, which absorbs moisture more readily than conventional petrol. Officials were reported to have expressed apprehension that ageing underground fuel storage tanks in the country’s mountainous terrain could be susceptible to water seepage, increasing the risk of phase separation. Such a development, the reports said, could affect fuel quality and potentially damage vehicle engines.
However, the Centre categorically denied the claims, reiterating that Indian OMCs had not made any proposal to export E20 petrol to Bhutan. It said reports suggesting that Bhutan had rejected such an offer were without basis.
India’s E20 petrol programme, which blends 20 per cent ethanol with petrol, is a key component of the government’s strategy to reduce dependence on crude oil imports, lower vehicular emissions and promote domestic biofuel production. As part of the nationwide rollout of cleaner fuels, E20 petrol is now available across the country. (IANS)
