… consumers expect a similar drop in prices of goods

Nima Wangdi

The fuel price in the country drastically dropped beginning this month. The drop comes after almost a year of soaring fuel prices triggered by the ongoing Ukraine-Russia war.

The petrol price dropped approximately by Nu 12 a litre and diesel by Nu 13 a litre.

Today, State Trading Corporation of Bhutan Limited sells petrol at Nu 69.27 and Diesel at Nu 70.86 per litre in Thimphu.

A litre of Petrol costs Nu 69.74 and diesel costs Nu 70.35 a litre in Chukha. Petrol cost Nu 66.88 a litre and diesel Nu 68.65 in Phuentsholing.

At Lungtenzampa fuel depot in Thimphu, a litre of petrol and diesel costs Nu 69.39 and Nu 70.97 respectively.

Ministry of Economic Affairs officials said that the drop in fuel prices is from the source.

According to The Economic Times, India has cut all windfall tax on crude oil from 3,500 rupees ($42.56) per tonne effective from Tuesday, as per a government notification. The windfall tax on diesel was cut to 50 chhetrum per litre from Nu 1 previously.

As on April 4, only diesel carries a windfall tax while crude, Aviation Turbine Fuel and petrol will not attract any such levies.

India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax supernormal profits of energy companies. At that time, export duties of Rs 6 per litre (USD 12 per barrel) each were levied on petrol and ATF and Rs 13 a litre (USD 26 a barrel) on diesel.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

The levy on fuel exports is based on cracks or margins that refiners earn on overseas shipments. These margins are primarily a difference between the international oil price realised and the cost according to the report.