Neten Dorji

Samdrupjongkhar—It is not the clean environment or scenic beauty that attracts Indians to Samdrupjongkhar town but, ironically, the cheaper fuel imported from India.

In Samdrupjongkhar, petrol costs Nu 62.08 per litre, and diesel is priced at Nu 64.65 per litre. Across the border in Assam, however, petrol is sold at INR 98.53 per litre, while diesel costs INR 89.76 per litre.

This significant price difference draws hundreds of foreign vehicles into Samdrupjongkhar daily, primarily for refueling. The influx has resulted in severe traffic congestion at the border gate and increasing pressure on the town’s imported fuel supply.

The price disparity stems from differences in tax rates imposed by the respective governments. Bhutan levies a 10 percent tax on petrol and diesel, while Assam imposes significantly higher rates—24.77 percent on petrol and 22.9 percent on diesel.

Records from the Integrated Check Post (ICP) indicate that between 1,300 and 1,500 foreign vehicles cross the border daily, with approximately 70 percent of them arriving solely to refuel.

Vendors across the border sell petrol taken from fuel stations in Samdrupjongkhar

Many bikers and drivers openly acknowledge that the lower fuel prices in Samdrupjongkhar are the primary reason for their frequent visits.

“I have two commercial vehicles, including one dumper. On days I refuel both, I save around INR 10,000. The cheaper fuel in Samdrupjongkhar is why we avoid refueling at our own stations,” said a contractor from Darranga, Assam, speaking on condition of anonymity.

Despite the long queues and traffic congestion, many continue to refuel in Samdrupjongkhar to save money.

A Kuensel independent research found that foreign vehicles and two-wheelers take back up to 1,500.23 litres of fuel in just one hour at a single State Trading Corporation of Bhutan Limited (STCBL) fuel station.

This fuel is often resold illegally on the streets of towns like Darranga and along the Tamulpur highway. Vendors mark up prices, selling petrol in repurposed mineral water bottles—half a bottle for INR 40, a full bottle for INR 80, and one and a half bottles for INR 120 or more.

Roadside vendors in Darranga and Tamulpur openly admit to sourcing their fuel from stations in Samdrupjongkhar.

“My son makes eight to ten trips a day to bring back petrol and sell it here. It gives us a business opportunity and creates jobs for young people,” said a vendor who also sells tea alongside fuel.

A woman operating a similar business shared that her fuel sales, combined with tea and grocery offerings, are sourced entirely from Samdrupjongkhar fuel stations.

“My husband brings back fuel in a jerry can since he works as a DANTAK driver. We don’t make multiple trips, but I sell whatever he brings back,” she said.

The lucrative nature of the fuel trade has led to the modification of vehicle fuel tanks to carry larger quantities, worsening the fuel shortage in Samdrupjongkhar and often impacting Bhutan’s economy and its reliance on subsidised fuel imports from India.

In one instance, Kuensel found a Santro vehicle, which normally has a fuel tank capacity of 32.62 litres, refueling with 80.20 litres—clearly a result of modifications designed to smuggle extra fuel back to India.

A fuel attendant confirmed the trend, noting that vehicles like the Bolero, Van, and Santro often arrive with altered tanks. “About 60 percent of the imported fuel is taken back by Indian vehicles. We know it is sold illegally in India, but there’s little we can do,” the attendant said.

This illegal trade benefits individuals across the border and even within Bhutan’s fuel supply network but creates significant problems for local residents.

The steady influx of vehicles leads to heavy traffic congestion, particularly around the Integrated Check Post (ICP) gate.

Kuensel learned that it takes up to 1 hour and 15 minutes to cross the border into Bhutan from the small Darranga town. This congestion also increases the risk of accidents as vehicles and pedestrians jostle for space.

A local businessman described the situation as chaotic, emphasising its negative impact on tourism. “The increasing number of vehicles making multiple trips to refuel makes it harder for tourists and commuters to pass through,” he said. “Because of the traffic congestion, some tourists are turning back.”

Bus driver Tshering Tobgay shared his frustration: “Vehicles modifying their tanks have caused frequent fuel shortages. Every time I refuel, Indian vehicles are lined up, and sometimes there’s no fuel left.”

Taxi driver Zangpo echoed similar concerns, stating, “Whenever I come to refuel, there’s always congestion near the stations. It sometimes takes half an hour just to get fuel.”

Another taxi driver, Dawa Singye, called for action against those making multiple trips to refuel.

“We don’t mean to stop Indian vehicles from refueling in Bhutan, but it’s not fair for them to take back large amounts of fuel,” he said, adding that subsidised fuel in towns like Samtse, Phuentsholing, Gelephu, Nganglam, and Samdrupjongkhar is largely consumed by Indian residents.

Officials from the State Trading Corporation of Bhutan Limited (STCBL) and Bhutan Oil Corporation acknowledged the challenges.

“Most of our customers are from bordering towns,” said an official. “We can’t deny them, but we are trying to manage the stock for Bhutanese vehicles.”

However, they admitted being unable to stop the black market activities, noting that their operations rely heavily on customers from across the border.

Following reports of vehicles with unauthorised modified fuel tanks refueling at depots, the Regional Office of Industry, Commerce, and Employment in Samdrupjongkhar issued a notice to all fuel depots, urging stricter monitoring and regulation.

The notice issued by the Regional Office of Industry, Commerce, and Employment strictly prohibits refueling vehicles with non-standard fuel tanks.

“We have observed certain vehicles making multiple refueling trips in a single day,” the notice stated. “This raises concerns about fair fuel distribution, potential misuse, and could lead to fuel shortages, thereby affecting other customers and essential services.”

The notice also highlighted that trade inspectors would monitor fuel dispensing sites as frequently as possible. Any lapses noted would result in necessary actions, including the imposition of penalties.

The black market extends beyond fuel, with unauthorised currency exchanges also emerging as a concern.

A fuel distributor, Tshering Dorji (name changed), revealed, “Some officials charge extra fees of 1 percent to 2 percent for exchanging Indian Rupees with Ngultrum. This black market activity causes unnecessary fluctuations in the value of the Ngultrum.”

The Royal Bhutan Police (RBP) at the Integrated Check Post (ICP) occasionally intercept vehicles with modified tanks, but their enforcement capacity is limited. “We catch up to five vehicles with modified tanks, but all we can do is send them back,” an RBP official said.

To address the growing issue, residents and officials have proposed stricter regulations.

“Restricting refueling to once a day or week, with vehicle number plates verified by authorities, could ease tensions at the border gate,” suggested an official.

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