02/05/2026
Press Release
Thimphu, Bhutan | 1 May 2026
The Royal Government informs the public that fuel import costs continue to remain under pressure. Diesel prices, in particular, require close attention due to its central role in transportation, construction, agriculture, and the distribution of essential goods.
In view of the revised invoice prices received for 1 May 2026, and in line with the National Fuel Price Smoothening Framework(NFPSF) , the retail selling price in Thimphu will be maintained at Nu. 102.40 per litre for petrol and Nu. 98.31 per litre for diesel , effective from midnight of 1 May 2026 . Without Government support, the retail price would have been Nu. 139.34 per litre for diesel . The fuel prices in other Dzongkhags will be set in accordance with the approved fuel price support.
Since the implementation of NFPSF, a total sum of Nu. 1.16 billion (Nu. 58.812 million for Petrol and Nu. 1,099.617 million for Diesel) has been spent between March 22 and May 1, 2026 to keep fuel affordable for all Bhutanese. This intervention is essential to keep inflation manageable and contain pressure on transport, logistics, and household living costs.
Key outcomes of the intervention under the NFPSF include:
● Headline inflation was contained at 6.07 percent in March 2026.
● Without government support, headline inflation for March was projected to climb significantly, reaching an estimated 7% to 8%.
● Although transport inflation rose from -1.11% to 4.37% in March, estimates indicate it would have surged by more than 6% without this intervention.
The fuel price support under the NFPSF serves as a short-term inflation cushion while allowing the economy to adjust gradually to external price shocks. Fuel Prices and support will be reviewed every 15 days, with adjustments made as global fuel markets evolve. The Government remains committed to ensuring this support is temporary, targeted, and fiscally prudent.
In continuation of the measures established under Executive Order C2/2026/1146 dated 2 April 2026, the Royal Government reiterates the urgent need for collective national solidarity in reducing fossil fuel consumption. All public agencies and the general public are therefore directed to intensify their efforts to reduce fossil fuel consumption.
