Why Bhutan does not want E20 petrol from India
What's the story
In a major deviation from India's ethanol blending policy, Bhutan has turned down an offer from Indian Oil Marketing Companies (OMCs) to supply E20 fuel. The decision comes amid debates and protests in India over the impact of E20 petrol on vehicle performance. The Bhutanese government has requested India to continue supplying regular petrol as long as it is available in the Indian market.
Infrastructure issues
Bhutan's steep terrain makes E20 impractical
Bhutan's refusal to accept ethanol-blended petrol stems from its inadequate and aging fuel storage infrastructure, which isn't designed for handling E20. The country's steep, hilly terrain also makes it difficult for vehicles to deliver maximum power. Authorities are worried that E20 may not provide the consistent performance needed on Bhutan's mountainous roads.
Performance concerns
E20 petrol in India
The introduction of E20 petrol in India has drawn major criticism, especially from owners of pre-2023 petrol vehicles. They have reported a decline in fuel efficiency, increased maintenance issues, and more wear and tear. The Indian government has acknowledged that while E20 may slightly reduce mileage, the benefits such as improved acceleration and better engine performance outweigh this drawback.
Fuel sourcing
Bhutan sources all its fuel from India
Bhutan sources all its fuel directly from India, currently purchasing higher-export quality petrol and diesel. These are more expensive than the fuel sold at Indian petrol pumps. However, Bhutan's Department of Trade has firmly rejected offers from Indian OMCs - IOCL, BPCL, HPCL - to supply E20 petrol. The main reason behind this is Bhutan's aging underground fuel tanks that are prone to water contamination.
Storage issues
What is the issue with water contamination?
E20 or ethanol-blended petrol contains a hydroxyl group, making it highly hygroscopic. This means it absorbs moisture from the surroundings easily, unlike pure petrol. If stored in tanks prone to water contamination, there is a high chance of dilution. This could lead to major engine issues and affect vehicle performance in the long run, a Bhutanese official said.
Request made
Bhutan requests advance notice on ethanol blending increase
Most of Bhutan's fuel depots are located in high-humidity mountainous regions, making it difficult to prevent moisture from entering storage tanks or stopping condensation. The Bhutanese government has requested Indian OMCs to give advance notice if they plan to increase ethanol blending or switch to fully ethanol-blended petrol. It has also asked for leak-proof tanks from these companies.