Oil crisis in Bhutan, huge jump of 60% in petrol and diesel prices; Amidst the crisis, India became a ‘troubleshooter’

India Bhutan Fuel Supply Support: The heat of the ongoing fierce conflict in the Middle East has now reached the Himalayan country Bhutan. Due to instability in global oil prices, there is a serious fuel crisis in Bhutan. Considering the seriousness of the situation, the Bhutan government has admitted that the situation is now out of their control which has resulted in a historic increase in the prices of petrol and diesel in the country.

Record increase of 60% in prices

According to an official statement issued by the office of Bhutan’s Prime Minister Dasho Tshering Tobgay, petrol prices have increased by more than 60 percent since the Middle East conflict began on February 28. The price of petrol which was available at around 65 ngultrum (0.70 US dollars) per liter in the month of February, has increased to more than 95 ngultrum by April 1, 2026.

According to the new rates effective from midnight of April 1 in Thimphu, the actual retail price of petrol has reached 114.31 ngultrum per liter and the price of diesel has reached 174.13 ngultrum per liter. However, to provide relief to the general public, the government has given huge subsidy, after which the effective price has been fixed at 98.00 ngultrum for petrol and 98.31 ngultrum for diesel.

Government’s ‘Smoothening Framework’

The Government of Bhutan has issued a ‘National Fuel Price Smoothening Framework’ on 21 March 2026. Fuel subsidy was introduced to reduce the financial burden on the domestic economy and common households. Being a carbon-negative nation, the government has made a special appeal to the population of around 8,00,000 to cooperate in this time of crisis.

The Prime Minister’s Office has advised citizens to avoid long distance travel. Along with this, instructions have been given to all public service agencies to implement ‘work from home‘ to reduce fuel consumption. Adopt measures like walking to office and traveling only when absolutely necessary.

Expressed gratitude towards India

Amidst this international crisis, Bhutan has greatly appreciated the role of its neighboring country India. Bhutan is dependent on India for all its fuel needs and imports petroleum products through India.

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The government in its statement specifically thanked the Government of India, saying that despite huge disruptions in the global supply chain, India has ensured uninterrupted supply of POL (Petroleum, Oil and Lubricants) and LPG to Bhutan. The government said that India’s cooperation in this difficult time is extremely important to maintain the economic stability of the country.