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Fuel prices changed 17 times this year

November 4, 2015
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Fuel prices changed 17 times this year-Petrol and diesel prices changed around 17 times starting this year January until today. Diesel price started at Nu 50.9 in January. Prices reached an all time high at Nu 54.9 a litre in May and settled at Nu 46.9 a litre by October.

The highest price of petrol was felt in June when it reached Nu 66.8 a litre. Today it has reached Nu 58.5 a litre.

Fuel prices have been decreasing in the country this year as a result of decrease in global crude oil prices. Many factors had contributed to decrease in global crude oil prices. The slowing down of the Chinese economy and increased oil production in the United States contributed to the decrease.

The decreases in fuel prices have had significant impact on Bhutanese inflation. Fuel price is the fourth major contributing factor while calculating inflation. Transportation of goods and commodities becomes cheaper with decrease in fuel price.

Bhutan recorded its lowest inflation this year. In September this year, inflation was recorded at 3.1 percent.

Overall fuel consumption in the country is expected to have increased this year compared to last due to the lifting of restrictions on car imports. Since the restriction was lifted, more than 9,000 vehicles were imported.

Last year, Bhutan imported fuel worth Nu 8B, more than the money the economy earns from hydropower sale. Bhutan imports all its fuel requirements from India.

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