Is it true that Bhutan buys petrol from India?
GeneralClass 12AllAnswered 27 Mar 2026
Answer
Yes, Bhutan imports 100% of its petroleum products from India through Indian Oil Corporation and other Indian PSUs. This arrangement stems from the India-Bhutan Friendship Treaty and trade agreements. India supplies petrol, diesel, LPG, and aviation fuel at subsidized or special rates, strengthening bilateral ties. The fuel is transported by road through designated border entry points. This dependence makes Bhutan's energy security linked to India. In return, Bhutan exports hydroelectric power to India—a mutually beneficial arrangement. The petroleum supply agreement includes pricing formulas that generally favor Bhutan, contributing to their lower domestic fuel costs.
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