India is adding ethanol to petrol. But we cannot buy that oil. That is what Bhutan has said. Currently, they are not willing to buy E20 petrol from India. Instead, they are requesting to supply regular petrol when available.
According to a report in Bhutanese newspaper The Bhutanese, Indian Oil Marketing Company has offered to supply E20 fuel to Bhutan. However, Bhutan’s Department of Commerce rejected the proposal. After all, they fear that using E20 fuel under current conditions may cause problems both in its storage and in the vehicle’s performance.
Most fuel storage tanks in Bhutan are built underground. These old tanks are prone to water infiltration. And there are big concerns about E20 petrol. This is because ethanol readily absorbs moisture from the air. As a result, even a small amount of water in the tank can quickly degrade the quality of E-20 fuel.
Experts believe that ethanol is highly hygroscopic due to its hydroxyl group. This means that it easily attracts moisture from the environment. As a result water mixed with fuel cannot be separated easily. This not only reduces fuel quality, but also increases the risk of waxing in steel tanks and pipelines. In the long run, it can affect the engine and performance of the car.
A bit more torque is required for hilly riding. They have to climb steep roads. In that case engine performance is very important. Bhutan fears that car pickups on E-20 petrol will decrease.
Additionally, most fuel depots in Bhutan are located in areas with high humidity. As a result, it is difficult to prevent condensation or water vapor from accumulating in the tank. This is why the country’s administration considers it dangerous to store E20 fuel.
Currently, Bhutan imports high quality export grade petrol and diesel from India. The price of this fuel is higher than what is sold at regular petrol pumps in India. However, Bhutan’s commerce department has categorically rejected the offer of E2 supply by Indian companies IOCL, BPCL and HPCL.
At the same time, Bhutan has requested Indian oil companies to inform them in advance if the rate of ethanol blending in petrol increases further in India in the future or if the country moves towards fully ethanol-based fuel.
The controversy over E20 petrol in India is not unknown. Owners of many gasoline-powered vehicles built before 2023 complain that using E-20 has reduced mileage. Maintenance costs have increased. The engine is overstressed. Although Union claims mileage is slightly affected, engine performance is improved. However, the central government has claimed in court that it tried to add ethanol to petrol as an ‘experiment’.
