Bhutan is feeling the economic impact of rising global fuel prices, driven by ongoing tensions in the Middle East. As an import-dependent country, the surge has led to increased domestic fuel costs, affecting transport, businesses, and household budgets.
To ease the burden, the government introduced a fuel subsidy under the National Fuel Price Smoothening Framework (NFPSF) on March 21, helping keep petrol and diesel prices lower than actual market rates. The subsidy is reviewed every two weeks.
Despite this support, taxi drivers, truck operators, and workers across sectors report shrinking incomes and rising expenses. Higher fuel costs are also pushing up prices of essential goods, making daily life more expensive for many Bhutanese families. Officials are encouraging reduced travel, remote work, and walk-to-work practices to cut fuel use. However, for most citizens, adapting to rising costs has become a necessity as global conflicts continue to affect local livelihoods