It was another blow to the country’s already expensive commodities. The fuel price rose to a new high on Monday. The International Energy Agency, a Paris-based organization forecasts the price for natural oil to continue to grow this year. In Bhutan, the price of petrol increased by almost Nu 5 and diesel, by almost Nu 3.
The price of petrol in Thimphu increased to Nu 86.28 per litre while Diesel costs Nu 82.93 per litre today. The price of fuel is revised twice a month.
The increase is due to the rising price of global crude oil and rupee depreciation. Global oil demand is expected to reach pre-pandemic levels by early next year as the economy recovers.
Bhutan’s fuel price is dependent on the Indian economy since Bhutan directly imports fossil fuel products from India. The Indian fuel price is however determined by international oil price – as well as the dollar-rupee value, as India imports oil.
In India, the price of petrol and diesel continue to remain high. The price of petrol in India’s capital city, Delhi rose to Rs 110 a litre and Petrol costs Rs 98 a litre.
In its monthly report, the International Energy Agency forecast increase in global oil demand in 2022. By then, the supply will be high enough to allow oil stocks to be replenished.
Samten Dolkar
Edited by Tandin Phuntsho
