The Bhutanese Leading the way.
Bhutan’s imports of petroleum products continued to rise in 2025, with petrol imports increasing by 38.74 percent and diesel imports by 27.54 percent, according to the National Statistics Bureau’s Annual Environmental Accounts Statistics 2025. The figures highlight Bhutan’s continued dependence on imported fossil fuels despite its substantial renewable electricity resources, raising questions about the factors driving fuel demand and the country’s efforts to reduce reliance on imported petroleum.
The report recorded total oil imports of 345,072.87 kilolitres from India in 2025. Diesel accounted for the largest share at 245,657 kilolitres, while petrol imports reached 99,416 kilolitres. Diesel imports increased by 27.54 percent compared with 2024, while petrol imports rose by 38.74 percent. Imports of liquefied petroleum gas also increased by 6.78 percent, reaching 9,587 metric tonnes. The increase in petroleum imports comes as Bhutan continues to rely heavily on hydropower for electricity generation. However, renewable electricity does not automatically replace petroleum products used in transport, industries and other economic activities.
Khandu, a heavy vehicle driver from Wangdue Phodrang, said he has been transporting heavy materials such as sand and gravel for the past four years. He makes daily trips from Wangdue Phodrang to Sephu Gewog, consuming around 80 litres of diesel a day. He earns approximately Nu 18,000 per load. However, rising fuel prices have reduced his earnings, making the work increasingly difficult to sustain.
“Before, when fuel prices were lower, my income was enough. But now, with the increase in fuel prices, I am losing interest in this work,” he said. Khandu said the cost of filling his truck with 80 litres of diesel has increased from Nu 7,200 to Nu 8,720, adding Nu 1,520 to his daily fuel expenses.
The growing volume of fuel imports raises questions about which sectors are driving demand, how much the country spends on imported petroleum and whether current policies are reducing dependence on fossil fuels. Transport could be an important area to examine, particularly in relation to the growth in the number of vehicles and the adoption of electric vehicles.
The figures also raise questions about Bhutan’s exposure to changes in international oil prices and the implications for the country’s import bill and energy security. The report further recorded an 84.71 percent increase in fuel re-exports. The reasons behind the increase, including the types and quantities of fuel re-exported, require further clarification from the relevant authorities.
Dhendup, a resident of Khasadrapchu in Thimphu, said he would like to switch to an electric vehicle (EV) but the high purchase price, limited availability of spare parts and inadequate charging infrastructure have discouraged him from making the change. He said he currently uses around 30 to 40 litres of fuel a month, adding to his regular expenses as fuel prices continue to rise.
Although he sees electric vehicles as a potential way to reduce fuel costs, he said the initial investment remains a major barrier. Concerns over the availability of spare parts and charging stations also make him hesitant to switch from a conventional vehicle. For people like Dhendup, the decision to buy an EV is not based on fuel savings alone. The purchase price, ease of maintenance and access to reliable charging facilities are also important considerations. He said making electric vehicles more affordable and expanding charging infrastructure could encourage more people to consider switching from petrol and diesel vehicles.
