Goa, July 4 -- India's push towards ethanol-blended fuel has met resistance from neighbouring Bhutan, which has declined offers from Indian Oil Marketing Companies (OMCs) to supply E20 petrol. Instead, the Himalayan nation has requested that India continue providing conventional petrol for as long as it remains available.

According to reports, Bhutan's decision is largely driven by concerns over its ageing fuel storage infrastructure. Many of the country's underground storage tanks are old and vulnerable to water seepage. Since E20 petrol contains 20% ethanol, it readily absorbs moisture from the surroundings, making it more susceptible to contamination than conventional petrol.

Officials fear that if water enters storage tanks, the eth...