Fuel Overview

The entire fuel supply for Bhutan is supplied by the Indian Oil Corporation Limited (IOCL-59%) and Bharat Petroleum Corporation Limited (BPCL-41%) through three private distributors in the country, Bhutan Oil Corporation (BOC), Druk Petroleum, and Damchen Petroleum. These three distributors service 48 fuel stations across the country. The quality and price of fuel in Bhutan is regulated by the Department of Trade (DoT) under the Ministry of Economic Affairs. All three distributors offer the same price as fixed by DoT.

BOC is the largest distributor and has 30 fuel stations all around the country. It has a storage capacity of 250 kilolitres (kl) at each of its three regional depots located at Phuentsholing, Gelephu and Samdrup Jongkhar and has storage capacity of 100 kl of Jet A1 at Paro International Airport. The second largest distributor is Druk Petroleum which operates 10 fuel stations and has storage capacity of 200 kl at Phuentsholing, 75 kl at Thimphu and 140 kl at Gelephu.

For emergencies, as a reserve, the government has around 1,000 kl (around 300,000 litres of petrol and 700,000 litres of diesel) at Dechencholing, Thimphu. In the capital, there are five fuel depots which have 345 kl of back-up storage (165,000 litres of petrol and 180,000 litres of diesel).

The Bhutan Oil Corporation (BOC) operates a Jet A1 fuel station at Paro International Airport. Its storage capacity is 100 kl and also has 20 kl of re-fillers at the site. The manager advises that this stock is adequate for some 14 days of supply to the available aircrafts. The price of 1 litre of Jet A1 fuel is BTN 47.94 (USD 0.75).

For more information on government and fuel provider contact details, please see the following links: HQ staff will input links to sections 4.1 Government Contact List and 4.7 Fuel Providers Contact List here.

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Fuel Pricing

The Department of Trade under the Ministry of Economic Affairs (MoEA) regulates the price of fuel in Bhutan and is slightly different for different districts depending on the transportation cost. The price of fuel is directly influenced by the market price of fuel in India for diesel and petrol. However, Government of India (GoI) provides a subsidy for liquid petroleum gas and kerosene. For all import of fuel the RGOB imposes 5 % sales tax and 5 % green tax.

 

Seasonal Variations 

There is no seasonal variation in the terms of supply of fuel from India. However, during the monsoon season, many of the roads connecting the different parts of Bhutan can get blocked in that way preventing the fuel stations from receiving supplies. In 2016, numerous road blocks did affect Bumthang and Trongsa districts leading to fuel shortages. The situation came under control as soon as the roads were restored. During such times, fuel stations practice rationing to avoid hoarding by some consumers.

 

Fuel Transportation

Due to its mountainous terrain and narrow roads, large tankers cannot be used to transport fuel in Bhutan. Therefore fuel is transported using tankers with a carrying capacity of 9-12 kl. The Bhutan Oil Corporation owns 36 such tankers, while Druk petroleum has 22 tankers which are used for transportation of fuel from its regional depots to the retail outlets across the country.

Standards, Quality and Testing

Department of Trade and Industry, Ministry of Economic Affairs regulates the quality and standard of fuel supplied to Bhutan. All fuel entering Bhutan is tested and certified by IOCL and BPCL and when it reaches the country, the receiving entity also conducts quality, density and impurity checks before offloading. In addition, the Department of Trade and Industry, conducts the tests every month at each fuel station to ensure that the standards are maintained.

Bharat Stage (BS) emission standards, introduced in India in 2000, are fuel emission standards that have been set up by the central government of India to regulate the output of air pollutants from internal combustion engine equipment including motor vehicles. IOCL confirms that all the supplies that are coming to Bhutan have BS IV standards.

 

 

 

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

 

Considering the fact that rail and waterway transport are not available in Bhutan, around 95 % of the cargo and goods are transported by road and the remaining by air. Most freight within Bhutan is moved on eight to ten trucks owned by private transporters. There are four or five major transporters and many smaller transporters in the country, mostly located and operated from the main business hub of Phuentsholing. There is a network of passenger buses throughout the country owned and operated by private individuals.

The current capacity of transporters seems to be adequate to meet the normal demand, however, during cash-crop seasons such as harvest time of potatoes (November to December), oranges (December to February) and apples (September to October), there is a higher demand for trucks from farmers to transport the produce for sale in India. During such periods, it is more difficult to obtain trucks at the prevailing market prices, as they obtain better prices for transporting seasonal farm produce.

It should be noted that that there are no government operated transport companies, and there is no regulation with regard to the price the transporters can charge. As a result, depending on the demand for transportation services, transportation charges can vary. During peak seasons, the cost can go up while during lean seasons they can come down, purely determined by the market forces.

Presently foreign / Indian trucks are not allowed to travel across Bhutan, except in cases when the cargo cannot be transported by Bhutanese trucks (such as for some sensitive materials that require customized transport facilities). Most trucks / trailers / sea containers coming from India are off-loaded at Phuentsholing and the cargo transported to other parts of Bhutan through smaller Bhutanese trucks. However, in 2016 Bangladesh, Bhutan, India and Nepal (BBIN) devised a Motor Vehicle Agreement that seeks to facilitate seamless cross-border movement of passenger and cargo vehicles in the sub-region. Although the present government was determined to ratify this agreement, the opposition and National Council are very much against it, stating that it will do more harm than good to Bhutan. Therefore, the BBIN agreement has been deferred by the parliament at the present time.

For more information on transport company contact details, please see the following link:

HQ staff will input a link to section 4.8 Transporter Contact List here.

 

 

 

 

 

 

 

 

 

 

 

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Overview

Manual labourers in Bhutan are mostly used in the construction sector such as for building roads and other Government and private infrastructure. Because of its small population and considering that it is an agrarian country which demands lot of manual work, there is an acute shortage of manual labourers in the country and most of the manual works are carried out by foreign workers pre-dominantly from India. Major infrastructure development projects have been implemented in the past two decades and as a result of the accelerating rate of development activities throughout the kingdom and the emergence of large projects such as Tala,  Kurichu, Punatsangchu and Mangdechu  Hydro Electric Projects the demand of foreign workers, both skilled and un-skilled increased substantially. In the year 2000, the Government approved the increase of ceiling of foreign workers within the country at any given time from 30,000 to 45,000 to meet the requirements of the three hydro projects. This is likely to be changed by the government from time to time depending on the economic activities, national security and supply of Bhutanese workforce who need to be provided with gainful employment.

There are no labour unions in Bhutan and Ministry of Labour and Human Resources (MoLHR) is the sole custodian of labour laws and regulations in the country.

 

Telecommunications in Bhutan includes telephones, mobiles, radio, television, and the internet. There is one satellite earth station, Intelsat. Bhutan Broadcasting Service (BBS), a government owned company, is the first and only television broadcast service in the country. There are five private radio stations that are currently broadcasting. Bhutan Info Communications and Media Authority (BICMA), an autonomous body, is the Communications and Media regulatory body in Bhutan. BICMA exercises control in terms of access to the radiofrequency spectrum and monitoring their usage, licensing of cable TV, broadcast media, printing presses, publications, entertainment licenses, ICT facility and service licenses, issuance of filming permits, review and certification of films and accreditation of journalists.

There are two main telecommunications companies in Bhutan, a state owned, Bhutan Telecom and a private company, Tashicell. Sim cards are easily available upon production of valid documents and data plans are quite reliable and easily available.

For more information on telecoms contacts, please see the following link: 

4.11 Additional Services Contact List

 

Telecommunications Regulations

Any telecommunications equipment (VSAT, HF, VHF, Thurayas etc.) entering the country needs approval and licence from BICMA. Annual fees need to be paid to BICMA for the frequencies used by UN agencies.

 

Existing Humanitarian Telecoms Systems

Most of the humanitarian telecoms systems are located in Thimphu, while HF and VHF radios are fitted in most UN vehicles. Communications equipment is procured, managed and monitored by individual UN agency. Sharing of communication equipment is possible in case is feasible/compatible and there are surplus/excess with other agencies.

 

Internet Service Providers (ISPs)

There are two ISP providers in Bhutan which are Bhutan Telecom, a government owned company, and Tashicell, a private company. Both these companies offer a range of lease line, broadband and mobile data at competitive rates. Most business and companies purchase internet connection from these two ISP providers. Both the ISP providers have a bandwidth up to 30 mbps, while 4 G data is available in all 20 Dzongkhags (Districts). With the exception for leased lines (provided through landline by Bhutan Telecome and as WIMAX by Tashicell) all internet services are paid on a volume basis. While recently efforts have been made to upgrade the quality of service, especially during high use hours the actual internet speed consumers can avail off can be limited at times given the country only avails of two gateways.

There are minimal downtimes which are mostly for maintenance and repairs conducted after midnight to avoid inconvenience to the public.

 

Mobile Network Operators (MNOs)

Bhutan telecom is the largest mobile network provider in Bhutan with a total 486,000 subscribers and has coverage in all district and sub districts while Tashicell has around 247,000 subscribers and has coverage in all districts but in very few sub-districts. Both operators make efforts to improve quality of service to customers.

For information on MNOs please visit the GSM Association website.

 

 

Overview

In Bhutan agriculture provides a livelihood to around 60% of the population and consists largely of subsistence farming and animal husbandry. Of Bhutan’s 7.8 % arable land, only 2.93 % is under cultivation. Therefore, Bhutan imports most of its food commodities from India. Main items imported are rice, meat, dairy products and vegetables.

According to trade statistics, the country in  2015 imported 83,646.083 MT rice and  spent  BTN  1.6  billion (USD 24 million).  In 2016, the country imported rice worth BTN 1.9 billion (USD 29 million). While Bhutan exports cardamom, potatoes, apples and oranges to India and Bangladesh.

In 2016 alone Bhutan imported BTN 1.54 billion (USD 24 million) worth of rice from India. While Bhutan exports cardamom, potatoes, apples and oranges to India and Bangladesh.

Top items imported by Bhutan in 2016 include vehicles, petroleum products and food while top exports include electricity, cement and minerals.

Phuentsholing is the main entry point for Bhutan and hence the main business hub where most of the trade takes place. 90% of food commodities that enter Bhutan come from India. Manufacturing capacity of Bhutan, in terms of food, is limited to juices, jams, vegetable oils, chips, pickles and other beverages.

The Observatory of Economic Complexity – MIT (OEC):

http://atlas.media.mit.edu/en/profile/country/btn/

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Overview

Most of the services required by any agency are available in Bhutan, though the capacity could be limited and quality not up to international standard especially in the isolated districts away from the major towns and cities. Availability and capacities of various service providers are explained in more details in the following sections.

For more information on company contact details, please see the following link: 

4.11 Bhutan Additional Services Contact List

Accommodation

Major urban centres and tourist destinations in Bhutan like Thimphu, Paro, Phuentsholing and Bumthang have a number of decent and standard guest house accommodation and hotels. However, other small towns and districts have only a limited number of accommodation options. For example, there is not a single standard tourist hotel in Gasa and Dagana districts. Therefore, Bhutan, in the event of large influx of people during an emergency might face challenges in terms of accommodation.

The website below provides the details of hotels in each district such as contact address, pictures and prices.

http://www.hotel.bt/

Electricity and Power

Electricity is the main source of power in Bhutan. In cooperation with the Government of India, Bhutan is undertaking several hydroelectric projects whose output is traded between the countries making hydropower the top contributor to Bhutan’s GDP. Though Bhutan's many hydroelectric plants provide energy far in excess of its needs in the summer, dry winters and increased fuel consumption demands Bhutan to import energy from India.

Power in Bhutan controlled by Department of Energy (DoE), its subsidiary Bhutan Electricity Authority (BEA) under the  Ministry of Economic Affairs. While the DoE formulates policy, planning, and coordination, the BEA is the main regulatory agency of the energy sector. Bhutan Power Corporation (BPC) is responsible for transmission, distribution and supply of electricity within Bhutan.

Electricity in Bhutan is quite stable with minimum down time and is connected through a national grid and spans to even the remote part of the country. In 2015, Bhutan generated around 7,747 million units(mu) out of which around 2000 mu was consumed domestically while the rest was exported to India.

 

 

There are three additional hydro power projects that are currently under construction phase and likely to be completed in coming two to three years. These projects are Punatsangchhu Hydroelectric Project (1200 MW), Punatsangchhu-II Hydroelectric Project (1020 MW) and Mangdechhu Hydroelectric Project (720 MW).

Financial Services

There are 7 financial institutions in Bhutan; Bank of Bhutan (BoB), Bhutan National Bank (BNB),  Bhutan Development Bank Limited (BDBL) Tashi Bank (TBank), Druk Punjab National Bank (DPNB), Royal Insurance Corporation of Bhutan (RICB) and Bhutan Insurance Limited (BIL). Of these 7, BOB, BNB and BDBL have their network throughout the country and they provide a wide range of banking services on a real time basis including  cash deposit transactions, loans of different types, withdrawals, loan repayment, account inquiries, fund transfers, remittances etc.

Bhutan Development Bank Limited (BDBL) has 33 branches and 3 regional offices across the country while Bank of Bhutan (BoB) has a network of 29 branches and 18 extension counters. BoB has the largest network of 82 ATMs spread across the country while BNB has 40 ATMs.

Bank of Bhutan (BoB)

Established by Royal Charter in May 1968, Bank of Bhutan (BoB) is the oldest bank in the country. It also acted as the Central Bank of Bhutan till the Royal Monetary Authority of Bhutan was set up in 1982. Registered under the Companies Act of the Kingdom of Bhutan 2000, as a public sector commercial bank, it was the country’s only banking institution until 1997.

Today, BoB is the largest commercial bank in Bhutan, with a  presence in every Dzongkhag (District), and major towns through a network of 47 branch offices. With the adoption of Core Banking Solution in 2009, banking operations were automated. This saw the emergence of ATMs, Internet Banking, POS and Mobile & Agency Banking Services as alternate channels to deliver banking services.

 

 

 Bhutan National Bank Limited (BNBL)

BNB was incorporated as the second Bhutanese banking company in 1995. Since then, the bank has been rapidly expanding. BNB today has 11 branches and 19 extension offices across the country.

BNB's mission is to become the leading "Relationship Bank" in Bhutan; offering an array of banking products and services such as customized loans, investments, letter of credits, foreign exchange and remittances to advisory services.

 

 

Bhutan Development Bank Limited(BDBL)

BDB (Bhutan Development Bank Limited) which was formerly known as BDFC (Bhutan Development Finance Corporation) was incorporated by the Royal Charter of the BDFC 1988 under the command of His Majesty the Fourth King Jigme Singye Wangchuck on 31st January 1988 with assistance from the Asian Development Bank (ADB) to function as a development financial institution (DFI)

BDB is the only Bank that gives focus to the rural farmers and immediately assumed responsibility for the nation-wide credit program, which mainly provide seasonal, small and medium term loans to the country’s small farmers. It had also commenced its Industrial Lending operations providing term finance and working capital for industrial and Agro-based ventures.

 BDBL has three regional offices, 34 branch offices, 12 field offices and 5 extension offices nationwide.

 

 

Clearing and Forwarding Agents

All border towns (Phuentsholing, Gelephu and Samdrup Jongkhar) have private clearing and forwarding agents certified by Department of Revenue and Customs. Services provided include, preparation of clearing documents, transportation and assistance in clearing the goods from Bhutan Customs. Since, Phuentsholing is the main commercial hub and border crossing point, most of the clearing and forwarding agents are based in Phuentsholing.

Handling Equipment

Cargo and freight are handled manually in Bhutan and as such handling equipment is not available.

Postal and Courier Services

Bhutan Post Corporation Limited (BPCL) is the main postal and courier service provider in Bhutan. The head office is based in Thimphu, but it has branches in all the Dzongkhags (districts) and towns managed by four regional offices. BPCL is also an agent for FedEx in Bhutan. There are other courier services such as DHL and TNT that provides mail and couriers services both within as well as outside Bhutan.

Printing and Publishing

There are around 30 printing and publishing companies in Bhutan and most of them are based in Thimphu. Some of the bigger printing and publishing houses are KMT Group, Kuensel Corporation, Bhutan Publishing House and Pharma Printing Press.

Taxi Companies

There are over 4000 registered taxis in Bhutan and though most of them are based in Thimphu and Phuentsholing, every Dzongkhag (district) has a good number of taxis. Road Safety and Transport Authority (RSTA) is the regulatory authority for all taxis in Bhutan. Most of the taxis are reliable and safe however, some of them sometimes might charge inflated fares depending on the demand of taxi services and the season. The vehicles do not have a meter.

Vehicle Rental

Vehicle Rental companies are available only in Thimphu, Paro and Phuentsholing. In other Dzongkhags (districts), there are no such rental companies. However, these rental companies can also provide vehicles to other Dzongkhags when required. A medium sized organization coming to Bhutan may be able to meet their initial needs through renting.

Waste Management and Disposal Services

The National Environment Commission Secretariat (NECS) is the overall regulatory authority responsible for overseeing and implementing the provisions in the Act and Regulation. The implementation of Waste Regulation began from 18 April 2012.  The regulations clearly identify the roles and responsibilities of different implementing agencies to ensure sound waste management.

The Waste Prevention and Management Act and Regulation, 2012 stipulates the promotion of the principles of 3Rs (Reduce, Re-use and Re-cycle). Greener Way and Clean Bhutan are two waste management companies in Bhutan, that collect, transport, sort and recycle waste in an environmentally friendly way. Every Dzongkhags and Thromdes have been allotted an area to be used as landfills and provided with waste collecting vehicles, but considering the increasing amount of waste being generated every day, these landfills and collection vehicles have proved to be grossly inadequate against the demand of the situation.

There are at least nine Acts that are directly or partially related to waste management in Bhutan. However, implementing and collaborating agencies, Dzongkhags and Thromdes are facing acute resource challenges and are calling upon the National Environment Commission (NEC) for better resources and suggesting revision of the waste prevention and management rules 2012. Lack of collection vehicles and landfill sites are the major issues facing the municipal authorities and Dzongkhag administrations.

Bhutan Youth Development Fund (YDF) has a paper recycling plant that recycles used paper and makes egg trays. Greener ways supplies the paper to the unit. Due to lack of recycling plants in Bhutan, most of the recyclable waste is sent to India for recycling.

More information on waste management and prevention can be found in National Environment Commission’s website:

http://www.nec.gov.bt/nec1/index.php/waste/

Waste Disposal Non-Hazardous

As outlined in the earlier section and despite limitations, every Dzongkhag (districts) and Thromde (municipality) has in place a system for collection, segregation and disposal of hazardous as well as non-hazardous waste.

The Waste Prevention and Management Regulation 2012 requires that any waste generated besides being collected, transported, sorted and recycled in an environmentally sound way, also needs to ensure the occupational health and safety of personnel handling the waste.

More information on waste management and prevention can be found in National Environment Commission’s website:

http://www.nec.gov.bt/nec1/index.php/waste/

Waste Disposal Hazardous

 The Waste Prevention and Management Regulation of 2012 states that no hazardous waste shall be imported into the kingdom of Bhutan. No individual or firm shall export hazardous industrial waste, raw materials for industrial processes or as by-products of industrial processes without the prior consent of the importing country.

The Waste Prevention and Management Act, 2009 also requires that e-waste (electronic waste) is disposed of in an environmentally sound and safe manner using a system of collection, treatment and self-disposal. Despite Bhutan being a signatory to the Basel Convention and having necessary regulations in place, the government is yet to dispose of its e-waste in an environmentally friendly way. The Department of Information and Technology (DIT) plans to recruit an e-waste management entity soon, which will be responsible for collecting, sorting and disposing e-waste in an environmentally safe and secure manner.

Currently, e-waste generated by the government is collected at the warehouse of the Department of National Properties (DNP) located in Chamzamtog. The DNP then auctions this e-waste to scrap dealers, both local and from India.

More information on waste management and prevention can be found in National Environment Commission’s website: http://www.nec.gov.bt/nec1/index.php/waste/

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.