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Fuel Crisis in Bhutan Impacts Daily Life Amid Rising Prices

News Summary

Produced by AI with editorial review.

  • The ongoing war in the Middle East has driven up petroleum prices in Bhutan, exerting pressure on the daily lives of its citizens.
  • On Wednesday night, the Bhutanese government announced new fuel prices, clarifying that the increase is due to factors beyond their control.
  • The government has urged the public and state agencies to conserve fuel, advising against unnecessary travel and encouraging walking.

The direct impact of the ongoing war in the Middle East has reached the Himalayan kingdom of Bhutan. With fuel prices skyrocketing on the international market, the Bhutanese government has again raised petroleum product prices, putting additional strain on the everyday lives of ordinary citizens.

On Wednesday night, the government released the updated fuel prices, explaining that the recent global price surge is due to factors beyond their control. Various measures to conserve energy have also been implemented.

Bhutan, with a population of approximately 800,000 and a landlocked geography, imports all its fuel from India. The effects of supply disruptions and increased prices have been particularly visible in the capital, Thimphu, where long queues at petrol stations have become common.

Local residents say they feel powerless to change the current situation. Karma Kalden, a 40-year-old resident of Thimphu, explained that while the government is not directly at fault, the war abroad and rising prices in India have left them vulnerable. She stated that the present circumstances leave them unable to take meaningful action.

Renowned as a carbon-negative country, Bhutan has heavily invested in hydropower generation and earns revenue by exporting electricity to neighboring India. However, its complete dependence on fuel imports has made it susceptible to such crises.

The war that began on February 28 in the Middle East has pushed petrol prices up by more than 60 percent. Prices that ranged between approximately 65 and 95 Ngultrum per liter in February have risen significantly by April 1, even after government subsidies.

Earlier, on March 21, the government introduced a fuel subsidy program aimed at reducing the impact on households and the economy. Nonetheless, ongoing price increases have made subsidies insufficient to stabilize the situation fully.

Considering the mounting economic pressure, the government has urged citizens and public institutions to save fuel. Public service agencies have been directed to avoid unnecessary travel, walk when possible, and adopt remote work where feasible.

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