The Bhutanese Leading the way.
STCBL is set to open additional Fuel Retail Outlets (FROs), with 3 at Nobding, Chumme and Daga Throm within a month. 2 FROs are to be commissioned by the end of this year in Gakiling, Haa and Nganglam, Pema Gatshel.
Officials from STCBL shared there were many requests for a FRO from many dungkhags across Bhutan, and STCBL is looking into the matter on case-by-case basis.
They shared that since investment cost is relatively high and rate of return is slow, STCBL had to analyze the business viability of that particular areas prior to commitment.
An official said, “We do the business analysis and give the commitment. We have recently signed an agreement with Dagana dzongkhag for leasing land at Lhamoizingkha and drawings are also approved. Likely, we will start construction by early year as we have not budgeted this year as we are unsure for land on lease.”
As for other dzongkhags, STCBL shared that there are already other fuel dealers operated by BOD or Damchen petroleum distributors, and there is a need to look into the financial viability and costs.
“I don’t have idea about other POL dealers but we follow proper SOP and quality assurance for amount paid. However, profit margin is Nu 1 per liter for POL dealer which is very less and DOT has deducted financial cost, Product loss, and Transit Insurance from the pricing structure”.
As of 28 February 2024, STCBL has commissioned 7 FROs.
As for any shortage or dry out at the fuel station, Department of trade (DOT) can penalize the POL dealers as per their guidelines. DOT has equally monitored the fuel stock and shortages.
As per DOT instruction in 2018, all POL dealers must import Euro VI/BS VI fuel.
