The Bhutanese Leading the way.
Airlines jack up rates as jet fuel does not get fuel support
The government so far has spent a whopping Nu 819.159 million (mn) on fuel price support as of 24 April 2026.
Of this, the bulk of the support has been consumed by diesel vehicles, receiving Nu 769.671 mn, with petrol vehicles consuming only Nu 49.48 mn.
The Nu 819.159 mn has been used from the Nu 1 billion reallocated from ESP to the price support mechanism, and to date, it has remained within that amount.
When the amount exceeds the initial allocation, funds will be reallocated from other activities.
With fuel prices unlikely to go down substantially in the near future, as the blockade in the Strait of Hormuz continues, the fuel price support is likely to consume a lot more government resources.
If the situation does not improve over time, then the government could look at more targeted fuel support, such as only for public transportation vehicles, goods and supplies transportation vehicles, etc.
The price support was introduced on 21 March 2026 onwards.
With effect from midnight of 16 April 2026, the retail selling price is maintained at Nu 102.90 per litre for petrol and Nu 98.31 per litre for diesel in Thimphu. To support these prices, the government is providing fuel price support of Nu 8.19 per litre for petrol and Nu 100.35 per litre for diesel.
The government had spent Nu 492 million till 16 April 2026 as price support, which means it spent Nu 327.159 mn in the last eight days itself, at an average rate of Nu 40.89 mn a day.
On a separate note, both the airlines in Bhutan, Druk Air and Bhutan Airlines, have hiked their fares due to high jet fuel prices, which they have to pay both in Bhutan and abroad. Jet fuel does not get price support.
The round-trip ticket costs have gone up to Nu 9,000 per person.
Before the war, the Paro–Bangkok–Paro sector for Druk Air cost Nu 35,473, and it now costs Nu 44,117 for Bhutanese, which means a hike of Nu 8,644 for the round trip.
The biggest hike is in the Paro–Delhi–Paro sector for Druk Air, which cost Nu 27,078 before the war, and it now costs Nu 36,226 for Bhutanese, which is a hike of Nu 9,148.
The Paro–Kolkata–Paro sector cost Nu 20,899 before the war, and it now costs Nu 27,813, which is a hike of Nu 6,914.
The Paro–Singapore–Paro sector cost Nu 58,075 before, and it now costs Nu 64,780, which is a more marginal hike of Nu 6,705.
The rates of Bhutan Airlines are similar to Druk Air, with no major difference.
An official said that while the main reason for the hike is the fuel surcharge, differences also come from airport taxes and other taxes in each country.
Both airlines have seen cancellations by tourists due to the war, but the numbers are still better than last year.
At this time, Bhutanese travelling are those who are forced to travel either for meetings or those going for medicals and unavoidable trips.
If prices do not come down, then both airlines anticipate a drop in winter when Bhutanese travel out for holidays and pilgrimage.
