Bhutan Reels Under Fuel Crisis, Expresses Gratitude to India for Lifeline Supply
Amid soaring fuel prices triggered by the Middle East conflict, Bhutan urges citizens to cut travel as India ensures uninterrupted POL and LPG supply
Thimphu: The impact of the West Asian conflict has now reached the Himalayan nation of Bhutan, triggering a severe fuel crisis. The government has acknowledged that the situation is “slipping beyond control,” forcing a significant hike in fuel prices. At the same time, Bhutan has expressed deep gratitude to neighboring India for ensuring a steady supply of petroleum products and LPG during the crisis.
In a statement released on April 1 by the Office of Prime Minister Dasho Tshering Tobgay, the government explained the reasons behind the price surge and appealed to citizens to avoid unnecessary long-distance travel. The carbon-negative nation urged people to limit movement to help manage the crisis.
Despite government subsidies, fuel prices have surged by more than 60 percent since the onset of the Middle East conflict on February 28. Petrol prices have risen sharply from around 65 Ngultrum (approximately $0.70) in February to 95 Ngultrum under the newly adjusted subsidized rates as of April 1.
According to the latest government order effective from midnight April 1, 2026, retail fuel prices in Thimphu have increased to 114.31 Ngultrum per liter for petrol and 174.13 Ngultrum per liter for diesel. However, after subsidies, the prices have been capped at 98.00 Ngultrum per liter for petrol and 98.31 Ngultrum per liter for diesel.
The Prime Minister’s Office stated that global fuel prices have witnessed a sharp increase in recent weeks, a factor beyond Bhutan’s control. To cushion the impact on households and the economy, Bhutan introduced a fuel subsidy on March 21 under the National Fuel Price Smoothing Framework (NFPSF).
With rising fuel costs putting pressure on the national treasury, the government has urged citizens and public service agencies to reduce fuel consumption. Suggested measures include walking to work, avoiding non-essential travel, and prioritizing work-from-home arrangements.
The government also extended heartfelt thanks to India for maintaining uninterrupted supply of POL and LPG despite disruptions in global supply chains.
It is noteworthy that Bhutan, a country with a population of around 800,000, relies heavily on India for its fuel imports.
