In a significant move to enhance fuel and gas supply systems in Bhutan, a delegation from the Department of Trade (DoT), Ministry of Industry, Commerce and Employment (MoICE), led by Chief Trade Officer Ms. Rinchen Lhazom, held Bilateral consultations with India’s leading oil Public Sector Undertakings (PSUs)—Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—from June 5–6, 2025, in Kolkata.

The discussions marked a pivotal step in strengthening bilateral trade cooperation, culminating in concrete resolutions aimed at improving fuel infrastructure, supply chain efficiency, and quality control mechanisms.

Key outcomes:

1. Fuel Infrastructure and Automation:
   1. IOCL committed to providing Multi-Product Dispensers (MPDs) across Bhutan and to promptly remove obsolete fuel pumps.
   2. Construction of a canopy at the Punakha fuel retail outlet is scheduled for completion by December 2025.
   3. HPCL agreed to initiate the automation of fuel retail outlets, supporting modernization and transparency.
2. Quality Assurance and Capacity Building:
   1. The PSUs will facilitate laboratory testing services and training programs on quality control management for Bhutanese personnel to ensure higher fuel standards.
3. Transparency in Fuel Pricing:
   1. All PSUs agreed to provide detailed breakdowns of invoices, including clear reflection of the License Fee Recovery (LFR) components.
4. Sustainable Fuel Transport:
   1. The companies collectively agreed to conduct a feasibility study on transporting fuel via pipeline from source points in India to Bhutan’s border towns—potentially reducing logistics costs and environmental impact.

The meetings also resolved to finalize the long-pending Business-to-Business (B2B) Memorandum of Understanding (MoU), reaffirming the mutual commitment between the Government of Bhutan and Indian PSUs to deepen energy cooperation.

These developments are expected to significantly improve fuel supply reliability and support Bhutan’s broader goals of sustainable and efficient trade logistics