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Price decrease attributed to change in domestic pricing module and diesel price drop in India 

Dechen Dolkar

What would come as a relief to many and bring down the cost of transportation, even if briefly, the price of diesel has decreased by Nu 8.33 per litre from midnight.

Diesel is priced at Nu 103.59 and petrol at Nu 97.82 per litre at the Lungtenzampa fuel station Thimphu today.

An official from the department of trade said the price has been reduced due to the revised domestic fuel pricing module. The ministry has implemented the revised domestic price module for fuels from June 1.

With the domestic price module, in Thimphu, petrol price has reduced by Nu 1.91 per litre and diesel price has reduced by Nu 1.13 per litre. However, the trade official said that the import price of petrol has increased and diesel price has decreased as compared to May 16.



“Therefore, there is a difference of Nu 8.33 per litre in diesel price including the Nu 1.13 per litre reduction due to revised pricing structure,” the official said.

Petrol price will increase almost by Nu 2 per litre. But with the implementation of the domestic price module, the price of petrol increased only by a few Chhetrum.

The domestic price module is a price mechanism for fuel that is charged by local fuel distributors after it reaches the country. It was developed in 2016.

In the domestic pricing mechanism, there are some things which could be omitted and the ministry has the authority to revise it. The ministry has made some changes.



On May 30, international crude oil had touched USD 112.84 per barrel, as per media reports. Global fuel price, however, is expected to increase as China relaxes the Covid-19 restrictions in its financial capital, Shanghai and businesses are expected to pick up.

Petrol prices in the UAE will increase in June amid surging global oil prices that have been mostly above US$100 a barrel since the end of February as per the media reports. The other factors could be as the economies have since reopened, manufacturing has revived, and people are driving and flying again. This led to a surge in demand and an increasingly tight oil market.

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