India's oil ministry vs Nepal news outlet over ‘rejection’ of E20 petrol by Balen's govt

INdia's ministry of fossil oil and cancel gaseous state (MoPNG) on sun rejected reports that kingdom of bhutan had refused to import India's E20 petrol, asserting that no Indian oil marketing company (OMC) had ever offered to export the fuel to the Himalayan kingdom and that “there is no proposal” for such exports.In a “Fact Check” posted on its official social media accounts, the ministry said: “Claims that Bhutan declined an offer to import E20 petrol from India are incorrect.” It added, "No such offer has been made by the Oil Marketing Companies (OMCs), and there is no proposal for export of E20 petrol to Bhutan. Please rely only on official information from MoPNG and the Oil Marketing Companies."The clarification came after reports, originating from the newspaper ‘The Bhutanese’ said the country's government — currently led by rapper-turned-politician Balendra Shah ‘Balen’ since elections held earlies this year after a Gen-Z protest brought down the older regime — had requested Indian public sector fuel suppliers to continue supplying regular petrol instead of ethanol-blended E20 fuel, because of concerns over storage infrastructure and fuel handling. The report was subsequently amplified by political leaders and social media users in India, with the Congress citing it while attacking the BJP-led Centre over its ethanol blending programme.The ministry's statement also came amid a broader public debate over E20 petrol following complaints from some motorists over mileage and maintenance — allegations that the government and automobile industry have rejected.Responding to the ministry's fact-check X post, The Bhutanese editor Tenzing Lamsang said the publication stood by its reporting, saying it was based on written and verbal responses from Bhutanese government officials.In a post on X, he also noted that India's petroleum ministry “has been a great partner for Bhutan consistently supplying fuel”.‘Request for regular petrol’To support the newspaper's report, Lamsang shared what he said was a written response from Bhutan's Department of Trade. The document, not signed by any named officials, states that Bhutan is “not importing E-20 petrol fuel” and details the concerns over ethanol-blended petrol, noting that ethanol is hygroscopic and can absorb water, potentially affecting fuel quality and vehicle performance if contamination occurs.It also says the condition of several underground storage tanks maintained by fuel dealers could pose challenges for handling ethanol-blended fuel.The response further adds: “In view of these concerns, the Public Sector Undertakings (PSUs)/OMCs in India were requested during technical meetings to continue supplying normal MS for Bhutan as long as such fuel remains available in the Indian market.”It adds that Bhutan has also requested advance notice before India transitions to higher ethanol blends or fully ethanol-based petrol so that fuel dealers can upgrade storage infrastructure and fuel handling systems.The document, however, does not explicitly state that Indian OMCs made a formal offer to export E20 petrol to Bhutan.There was no direct response from the Nepal government amid the controversy as of July 5 evening.Separately, India's ministry of information and broadcasting has also defended the E20 rollout, saying the fuel was introduced only after “extensive laboratory, vehicle, and field testing”.The government has maintained that ethanol blending follows internationally accepted standards; does not automatically void vehicle warranties, and has not resulted in evidence of widespread engine failures attributable to E20.The exchange comes as the Centre faces growing scrutiny over its flagship ethanol blending programme.At a media briefing on Saturday, automobile manufacturers reiterated that E20-compatible vehicles had undergone extensive testing and rejected claims of widespread engine damage linked to the fuel.Oil minister Hardeep Singh Puri also accused “vested interests” of spreading misinformation while reiterating that any move to increase ethanol blending beyond 20 per cent would follow rigorous testing and stakeholder consultations. Road transport minister Nitin Gadkari, seen as face of the E20 move, has repeatedly said certain “lobbies” are behind opposition to ethanol, made from sugarcane. He has said the E20 push benefits farmers and strengthens India's energy security since it imports most of its crude oil requirements.India achieved its target of 20 per cent ethanol blending in petrol ahead of schedule in 2025 and has been positioning the programme as a key pillar of its strategy to reduce crude oil imports and support farmers through higher ethanol production.