Fuel imports skyrocket; electricity exports plummet

Thukten Zangpo 

Bhutan’s electricity export dropped by 28.95 percent while the fuel imports, specifically petrol and diesel, skyrocketed by 45.57 percent last year, according to the Environmental Accounts Statistics 2024 published by the National Statistics Bureau yesterday.

The country exported only 5,143.84 gigawatt hours (GWh) of electricity, generating revenue of Nu 17.79 billion, a significant decrease from the previous year’s 7,240.21 GWh worth Nu 22.66 billion.

Last year, the overall electricity production experienced a marginal decline of 2.03 percent, totaling 10,535.6 GWh.

The export figure dropped largely due to increased domestic consumption driven by industrial demands.

The report highlights a staggering 77.53 percent rise in electricity consumption by the industrial sector, which now accounts for 93.83 percent of the total domestic usage. On the other hand, household consumption saw a steep decline of 32.33 percent.

The manufacturing sector recorded the highest electricity consumption at 64.03 percent, followed by construction at 9.2 percent, community, social, and personal services at 6.47 percent, mining and quarrying at 5.36, among others.

Despite the country’s status as a net electricity exporter, electricity imports during the lean season increased by 151.5 percent to 622 GWh worth Nu 2.97 billion.

While Bhutan’s energy is heavily dependent on electricity, the country also imports a significant amount of fossil fuel. It is expected that the fossil fuel import from India will continue until electric vehicles become more affordable.

Last year, fossil fuel imports reached 210,147.2 kilolitres (KL), primarily for automotive use. Petrol imports rose by 52.08 percent to Nu 3.39 billion while diesel imports grew by 43.38 percent to Nu 10 billion.

The service sector consumed 35.96 percent of the fuel, with households accounting for 24.2 percent, and industries at 20.19 percent. The agriculture, livestock, and forestry sector accounted for 12.16 percent.

However, kerosene imports saw a dramatic decline of 47.42 percent to 601.54 KL, alongside a slight decrease in LPG imports by 1.66 percent to 8,193 MT.

Last year, the country also saw re-export of the petrol and diesel consumed by the Indian vehicles operating on Bhutanese roads. It included vehicles transporting goods to and from Bhutan, Indian tourist vehicles, and those refueling in border towns such as Samdrupjhongkhar, Gelephu, Phuentsholing, Gomtu, and Samtse.

The re-export of fuel increased by 33.07 percent, rising from 10,538.93 KL in 2022 to 15,746.99 KL. Petrol re-exports grew by 52.08 percent, increasing from 7,316.30 KL in 2022 to 11,126.24 KL in 2023. Diesel re-exports rose by 43.38 percent, from 3,222.63 KL to 4,620.65 KL.