Petrol price in India was cut by 95 paise per liter yesterday, the second reduction in rates since October, on account of fall in international oil prices which shall have direct inevitable impact on the prices in Bhutan as well.
This means a drop of almost Nu 1 in Bhutan starting today, as it takes exactly 24 hours for the price change to be effective in Bhutan.
Petrol price has now been reduced to Nu 64.17 from 65.12 yesterday. “There has been significant volatility in the Indian rupee-USD exchange rate and is currently very weak with uncertainty about its future direction,” Indian oil corp (IOC) was quoted as saying by various Indian media. “The trends in the international oil market and Indian rupee-USD exchange rate are being closely monitored and the same shall be reflected in future price changes.”
Earlier, Tshering of the Department of Trade (DoT) said if the price has increased or decreased at source (India), it is “inevitable”. “With no resources, refineries, reserves and no import of crude, we are 100% dependent on the Indian government’s decision,” he explained.
In India petrol prices vary from city to city due to differential local sales tax or VAT rates and difference in price hike will vary from region to region in Bhutan. While the hike will be lower in border towns, it will be much higher in the regions that are far away from the borders.