No transport fare hikes yet as oil prices start to surge

2026-03-16 - 11:15

Despite the rising cost of global oil prices, public transport fares and delivery rates remain unchanged. The Bhutan Construction and Transport Authority (BCTA) reports that the current price fluctuations are not yet abnormal enough to trigger a formal revision. Chief Program Officer at BCTA, Tshongdu, said, “Currently, all the rates and fares of transport are the same. The fuel price has climbed only by a small amount as of now due to the conflict in the Middle East. Therefore, there are no fare changes or revisions.” “Only in the case of abnormal spikes, there might be changes in transport rates,” he added. Transport rates are regulated based on the Fare Competition Model, which is a framework for analyzing transport costs based on existing market competition. It takes into consideration the transport company’s total expenses, including maintenance, labor, insurance, etc. Thus, fuel is only one of the components that contributes to the overall expenses. A 5 percent variance is therefore maintained in the Fare Competition Model in order to avoid aggressive price wars. Tshongdu said that all the fares and rates are maintained within the 5 percent range, and that an abnormal surge or a change in transport costs can only be seen if the 5 percent threshold is exceeded. Taxi drivers in Thimphu share the rates of transport for most travelled routes. For Thimphu-Phuentsholing, the rate per person on a taxi is Nu 1,000. Drivers usually negotiate prices down to Nu 850 at times, depending on cars with more seats. For deliverable items, the normal price is Nu 200. Thimphu-Paro fare is Nu 300 per person, with Nu 150 charge for delivery of items. The fare for Thimphu-Punakha/Wangdue is Nu 400, with Nu 200-250 charges for delivery of items, depending on whether the load exceeds 20 kg. For local delivery services that include delivery of goods and products from online orders, taxi drivers charge Nu 150. “While BCTA sets a ceiling, actual prices often fluctuate based on negotiation and load quantity,” said Lhakpa, a taxi driver. He added that there hasn’t been much of a fare change in recent years. Similarly, fares and delivery rates for buses also vary with the increasing quantity for load and distance. In the case of heavy vehicles such as trucks and tippers however, they are not under the regulation of BCTA and thus, remains an open market with no fixed rates. A DCM driver, Sonam Tshering, shared how they usually charge for the main routes. From Thimphu-Phuentsholing, the rate is Nu 7,000. From Phuentsholing-Thimphu is Nu 13,000 which likely stems from hauling goods uphill vs downhill. Thimphu-Trashigang (and other eastern Dzongkhags) costs between Nu 40,000-45,000. For Trucks, the rate goes between Nu 50,000-60,000. Local transport or intra city charges typically float between Nu 2,500-3,000 depending on distance. Thimphu-Gelephu/Samtse share similar prices. The rate is Nu 18,000-19,000. Sonam said, “Fuel price surge doesn’t affect transport rates and has remained the same for a while now.” Since there is no regulation, we operate on the same price that we have been charging, with negotiations at times,” he added. The revision of the Road Safety and Transport Regulation 2021 will be conducted this July and anything relevant to penalties, fares and price changes will be revised then if necessary.