The Bhutanese Leading the way.
The Ministry of Infrastructure and Transport (MoIT) has announced that a comprehensive study on taxi supply and demand, which will guide future decisions on the issuance of taxi licenses, is expected to begin in the next fiscal year under a World Bank-supported project.
The update was provided during the 28th Meet-the-Press Session held on 5th June 2026 in response to a question on the findings of the study that prompted the ministry to impose a moratorium on new taxi driving licenses last year and its relevance amid rising fuel prices.
According to the Minister Chandra Bdr Gurung, the moratorium was introduced as a precautionary measure to address concerns over a possible oversupply of taxis, particularly in Thimphu.
He said preliminary assessments indicated that the number of registered taxis in the capital already exceeded demand during off-peak hours, resulting in lower earnings for taxi operators and contributing to traffic congestion.
Lyonpo said that the study is intended to determine whether issuing additional taxi licenses is justified based on actual market demand or whether the suspension should continue until demand increases.
MoIT also plans to use the study to develop a structured regulatory framework that would allow periodic reviews of taxi numbers and align future license issuance with demand.
However, he said that the study requires specialized technical expertise and analytical capacity that are not readily available within the country.
As a result, the ministry has proposed carrying out the assessment through the World Bank-supported Accelerating Transport and Trade Connectivity in Eastern South Asia Bhutan (ACCESS) Project.
Lyonpo said that the project would provide the necessary technical expertise to conduct a detailed assessment of the taxi sector and develop recommendations in a structured, comprehensive, and professionally sound manner.
Subject to implementation schedules and other necessary arrangements under the project, the study is tentatively scheduled to commence in the next fiscal year.
Responding to concerns about increasing fuel prices, the minister acknowledged that higher fuel costs have directly affected taxi drivers’ earnings and added to their financial burden.
In such circumstances, he said that limiting the number of taxis could help protect the livelihoods of existing operators by preventing further competition in a market that may already be oversupplied.
At the same time, Lyonpo emphasized that any policy on taxi licensing must strike a balance between ensuring adequate transport services for the public and maintaining the economic viability of taxi operators.
