Sherab Lhamo

Bhutan witnessed a significant increase in fuel prices on August 1 midnight. Fuel price in Thimphu has increased to Nu 71.53 for Petrol and Nu 72.46 for Diesel with a spike of Nu 4.80 petrol and Nu 5.68 diesel. 

In Phuentsholing, it is Nu 63.39 for Petrol and Nu 65.38 for Diesel. A litre of petrol costs Nu 73.73 and Nu 74.93 for diesel in Trashigang. Whereas in Rangjung it increased to Nu 75.26 for petrol and Nu 74.10 for diesel. 

STCBL officials said that the attributed surge in fuel price was due to the increase of crude oil price in India. India’s crude oil prices averaged USD 94 per barrel which is Nu 7,782.74 this year, having significantly increased compared to previous year of less than USD 65 according to The Economic Times.

In 2023, both Russia and Saudi Arabia have officially announced plans to reduce their oil production. As a result of this decision, the global oil supply has set in motion to decline, leading to a surge in oil prices on a global scale. 

India, which imports 40 percent of its oil from Russia and is a major oil importer from Saudi Arabia, is likely to be affected by these changes in the international oil market.