Bhutan faces fuel price surge amid global market volatility

Thimphu. The ongoing conflict in West Asia has directly impacted the Himalayan nation of Bhutan. Following a sharp rise in global fuel prices, the Bhutanese government has increased the cost of petroleum products, placing further pressure on the daily lives of its citizens.

The government announced the new fuel prices on Wednesday night, clarifying that the recent global price hikes are beyond its control. It also announced the simultaneous implementation of various energy-saving measures.

Landlocked Bhutan imports all of its fuel through India. The impact of supply disruptions and price hikes is evident in the capital, Thimphu, where long queues have been observed at petrol stations.

Local residents expressed helplessness regarding the situation. Karma Kalden, a 40-year-old resident of Thimphu, stated that while the government is not directly to blame, they cannot escape the consequences of international conflict and price hikes in India.

Known as a carbon-negative country, Bhutan has invested heavily in hydropower and generates revenue by exporting electricity to neighboring India. However, its total dependence on imports for fuel means it directly bears the brunt of such crises.

Since the conflict in the Middle East began on February 28, petrol prices have risen by more than 60 percent. Prices, which were around 65 to 95 Ngultrum per liter in February, have increased significantly by April 1, even at government-subsidized rates.

Previously, the government had implemented a fuel subsidy program starting March 21, aimed at mitigating the impact on households and the economy. However, due to continuous price hikes, it has become difficult to keep the situation under control with subsidies alone.

In light of the growing economic pressure, the government has called on the public and government agencies to conserve fuel. Public service agencies have been instructed to avoid unnecessary travel, walk whenever possible, and adopt remote working practices.