Cheaper Price, Higher Mileage? Internet Puzzled Over BPCL Petrol Stations In Bhutan
Bhutan imports most of its motor fuel from India, yet petrol prices in the country are said to be much cheaper.
A viral video on social media has puzzled users over a "contrast" in fuel efficiency and prices in India and neighbouring Bhutan.
The clip shows a man refueling his Toyota Fortuner at a Bharat Petroleum Corp. station, with the caption claiming that it was recorded in Bhutan. The person claims that the SUV delivers an average mileage of 18.6 km per litre in the Himalayan nation, compared to just 10.5 km per litre in India from the same fuel retailer.
According to Toyota, the Fortuner petrol mileage starts from 10.3 kmpl and the Toyota Fortuner diesel mileage starts from 14.35 kmpl.
The content of the video could not be independently verified.
Notably, Bhutan imports most of its motor fuel from India, yet petrol prices in the country reportedly hover around Rs 65 per litre, significantly lower than the Rs 100 mark seen in many Indian cities. This difference is not due to currency fluctuations, as the Bhutanese Ngultrum is pegged to the Indian rupee at a one-to-one rate.
The disparity stems largely from taxation. In India, petrol prices include the base fuel cost plus state value-added tax, central excise duty, and other levies. Petroleum products are excluded from GST, making fuel taxes a major revenue source for both central and state governments.
In contrast, Bhutan imposes only a sales tax and a green tax on petrol, relying instead on direct taxes and hydropower exports, primarily to India, for much of its revenue.
Bhutan’s smaller vehicle market and challenging terrain also contribute to its unique fuel dynamics. The country’s policy framework, combined with its economic structure, keeps fuel prices low and offers motorists a distinct advantage compared to their Indian counterparts.
