The 5 percent Green Tax on fuel has come into effect from today. This means the price of petrol and diesel has now increased by more than Nu.2 each.
The price of petrol in Thimphu is about Nu. 73 per litre and diesel is Nu. 60 for a litre.
These are the new prices of petrol and diesel in Thimphu, Trashigang and Phuentshogling.
Motorists started paying the new price from 9 this morning.
The government imposed the five percent green tax on fuel to correct the persistent current account deficit faced by the economy.
The tax is proposed as the demand for fuel is always on rise. Last year, Nu. 7.4 BN worth of fuel was imported from India.