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Government to procure 99 EVs and 45 electric buses amid rising fuel costs

May 22, 2026
in Economy, Other Stories
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The government is exploring alternatives in response to the ongoing global fuel shortage and soaring fuel prices. According to the Prime Minister, the government will procure electric vehicles and impose stricter regulations on the use of government vehicles, if necessary. The Prime Minister said this during the National Assembly’s Question Hour session today. 

During the Question Hour session, Thrimshing_Kangpar’s Member of Parliament from Trashigang, raised concerns over the rising fuel costs and the continued use of designated government vehicles.

The MP questioned whether the government would consider deploying electric vehicles to designated officials in Thimphu while converting fuel-run vehicles into pool vehicles.

“Government vehicles account for one of the highest expenditures in the country. There are currently 5,937 fuel-run government vehicles, including 327 in Thimphu. The annual expenditure on fuel and maintenance amounts to Nu 178.1 M, which is a huge expense,” said Thrimshing_Kangpar MP Damchoe Tenzin.

In response to this, the Prime Minister said the government will prioritise the use of electric vehicles given the uncertainties over fuel prices. According to the Prime Minister, an additional 99 government electric vehicles and 45 EV buses will be procured.

Prime Minister Tshering Tobgay said, “We are going to deploy electric vehicles as designated vehicles, starting with Members of Parliament. The current vehicles will be used as pool vehicles, while EVs will serve as designated vehicles. This will not only apply to Members of Parliament, but also to government agencies and organisations. We will talk with state-owned enterprises, and even the private sector soon.”

The Prime Minister said the government has not imposed compulsory restrictions on the use of government vehicles for now, as it continues to monitor the situation.

Since the fuel price surge amid global energy crisis due to the war in the Middle East, the government has been providing subsidy on fuel. While the subsidy on petrol was lifted on the 16th of this month, the government continues to provide subsidy of over Nu 23 per litre for diesel.

According to the Prime Minister, the government has spent Nu 1.45bn in fuel subsidy to date.

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