The Bhutanese Leading the way.
The recent spike in fuel prices has placed Bhutan in a familiar but uncomfortable position of being dependent, exposed, and largely in the dark.
From Nu 63 to over Nu 100 for petrol, and with diesel effectively cushioned only by a staggering Nu 1.16 billion in subsidies, the official explanation has been the Iran war and global volatility. That is partly true, but it is not the full story.
What is more troubling is what we do not know.
Despite a clear provision in the 2024 bilateral MoU requiring detailed invoice breakups, Bhutan has been unable to obtain even a basic cost structure from Indian Oil Marketing Companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. For four years, repeated requests have yielded little more than silence.
This lack of transparency might have been tolerable when prices were low. It is indefensible now.
Evidence from Nepal suggests that Bhutan is not being priced on the basis of crude oil costs, refining, and reasonable margins. Instead, pricing is pegged to far higher international benchmarks for refined fuel whose benchmarks are shaped by speculation, scarcity, and distant markets. In effect, Bhutan and Nepal are treated not as close partners, but as commercial export destinations.
The consequences are stark. Even conservative calculations indicate that diesel could land in Bhutan at significantly lower rates than currently charged. Yet without a transparent breakdown, it is impossible to determine where cost ends and margin begins.
This is not an accusation of wrongdoing. It is a call for clarity.
India has been a reliable partner, and fuel supply has never been interrupted. That goodwill must now extend to openness. When public finances are strained and citizens are bearing the burden, opacity is not acceptable.
Bhutan must engage India at a higher level, not in confrontation, but in firm pursuit of fairness and transparency.
In times of crisis, friendship should mean more than supply. It should also mean trust.
“Trust is built with consistency.” — Lincoln Chafee
