The Prime Minister Lyonchhen Dasho Tshering Tobgay clarified on the issue of fuel prices reduction in his State of the Nation Address.
With fuel prices rising internationally and also in Bhutan, there has been some confusion on the issue.
Lyonchhen said that last year, the government took the decision to pass on the full benefits of the excise exemption to the general public despite foregoing significant revenues to the national exchequer.
“Due to which, price of diesel reduced by Nu 7.26 per liter, from Nu 55.83 to Nu 48.57 per liter. The price of petrol also reduced by Nu 9.82 per liter, from Nu 61.28 to Nu 51.93 per liter.”
Lyonchhen explained that since the excise exemption was still being passed on even today, price of fuel is cheaper in Bhutan.
He gave the example of price of diesel being Nu. 60.66 in Phuentsholing and Nu. 70.53 in Jaigaon making the diesel in Bhutan cheaper by almost Nu. 10 per liter.
Similarly, Lyonchhen pointed out that the price of petrol is Nu 62.46 in Phuntsholing and Nu. 78.88 in Jaigaon making it cheaper by Nu 16.42 per liter.
He explained that the fuel prices have been generally increasing due to increases in the global oil market.
“However, since the Royal Government is passing on the benefits of the excise duty exemption to our people, fuel prices in the country are still relatively lower than India. We envisage that the cheaper price of fuel in Bhutan has and will continue to benefit the transport sector,” said Lyonchhen.