The Department of Trade under the Ministry of Economic Affairs (MoEA) has deferred the move to lift the supply of subsidized Liquefied Petroleum Gas (LPG) cylinders in four Thromdes until further notice. The department distributed the notifications on the discontinuance of subsidized LPG cylinders from January this year, on 24th July last year.
The move to discontinue the supply of subsidized LPG cylinders in the four Thromdes of Thimphu, Phuentshogling, Gelegphu and Samdrup Jongkhar was to make subsidized gas cylinders easily accessible to rural and low-income households. It was also to address the shortage of LPG cylinders in the country.
However, the increase in the monthly quota for subsidized LPG cylinders to 1000 MT from 700 MT by the government of India has improved the ground situation of LPG supply in the country today.
“The reason for the deferment of this policy measure is because the ground situation of LPG supply has changed and it has a positive situation. We noticed that the supply has improved drastically, especially the subsidized LPG. The government of India has approved a monthly 300 additional MT of subsidized LPG for Bhutan. And the initiative that we launched, Our Gyenkhu has been very successful. The general public has well received and well responded to the initiative and it has also improved the services of availing non-subsidized LPG and surrendering their subsidised cylinders,” said Rinchen Lhazom, the Chief Trade Officer at the Trade Regulation and Monitoring Division, Department of Trade, MoEA.
She further added the advocacy in terms of switching from fossil fuels to use of electric ovens and inductions has also reduced the demand for LPG cylinders in the country today.
However, she said the Ministry will adopt the policy measure of lifting the supply of subsidized LPG if a shortage of such gases arises in the near future.
“From all these factors, we have seen and noted that the stock of subsidized LPG in the country over the last few months have been very high. The total supply has increased drastically and the demand has reduced. So, we have seen a lot of stock balance with the distributors and we did not see the need to implement the discontinuance of the subsidized LPG from four Thromdes as of now. However, having said that if there a need and a situation arises in the future, we will adopt the policy measure according to the situation,” she added.
Today, Bhutan receives 1000 MT of Subsidized and Non Subsidized gas cylinders and 500 MT of commercial LPG cylinders every month from the government of India.
Passang Dorji
