Taxi Fare Revision Request Reaches Cabinet

Taxi operators across the country have requested for a revision of taxi fares, underlining that rising fuel prices have significantly reduced their earnings and made it increasingly difficult to sustain their livelihoods.

The proposal, submitted through the Bhutan Taxi Association (BTA), has been forwarded by the Bhutan Construction and Transport Authority (BCTA) to the Cabinet for review and decision.

According to BTA officials, the Association has requested the government to revise taxi fares for both intra-city and inter-city services. While no specific rate has been proposed, the Association has submitted operational cost data through an online platform to support its request.

“We have proposed only a revision of the taxi fare. The BCTA has already forwarded our proposal to the Cabinet for further review and decision,” a BTA official said.

Taxi operators say the current fare structure no longer reflects the increasing cost of operations, particularly following repeated increases in fuel prices. And this is echoed by taxi operators across the country.

Tenzin Wangyel, a taxi driver from Bumthang, said earning a livelihood through taxi services has become increasingly challenging.

“With the current fare, it is difficult to recover fuel expenses and still earn enough to support my family. It would be a great relief if the government revises the taxi fare,” he said.

Speaking along same lines, Sonam Penjor, a taxi operator from Paro, said profits have declined sharply since fuel prices increased.

“The little income we used to earn has become even smaller. We hope the government will consider increasing the fare, even if it is only by a small amount,” he said.

Another taxi operator, Kuenley, who provides services between Paro and Thimphu, said the government should consider the proposal as the rising operating costs are affecting drivers’ daily lives irrespective of who drive fuel or electrical taxi.

A taxi driver from Samtse also underlined the same stating that frequent increases in fuel prices have made it difficult to continue operating profitably. He questioned whether revising taxi fares would be the appropriate solution if fuel prices cannot be reduced.

Under the current fare structure, the charges for five- and six-seater taxis are Nu. 24.21 per kilometre for intra-city travel and Nu. 20.25 per kilometer for inter-city travel. For seven- and eight-seater taxis, the fares are Nu. 28.32 per kilometer for intra-city services and Nu. 24.06 per kilometer for inter-city travel. Nine- to twelve-seater taxis charge Nu. 32.52 per kilometer for intra-city travel and Nu. 27.99 per kilometer for inter-city services.

In its latest notification issued on 2 March 2026, the BCTA stated that the fare revision for passenger buses and taxis was capped within five percent following an assessment of public transport operating costs. The notification also stated that the existing bus and taxi fares would remain unchanged for the next six months.

The price of fuel has been consistently fluctuating due to the events unfolding in the Middle East, something which the government and the taxi operators would not have seen when the rates were fixed. Further, it is also unclear when the Middle East situation would come to a standstill. In such a scenario, the problem at hand has become a tricky matter for the government. Adding on to it, taxi operators say that even if the prices of fuel do decrease, it would not reach the point from where the rise began.

“The rate of petrol today here at Thimphu is Nu 97.46 per liter. The rise began from about Nu 64 per liter and even if we see a reduction in the price, it would not reach Nu 64. All we are requesting for is a raise in the taxi fares, corresponding to the rise in petrol price. If not, our situation will become very difficult,” Karma Tshering a taxi operator, said.

Meanwhile, taxi operators say they now await the government’s decision, expressing hope that a revision in fares will help offset rising operating costs and ensure the sustainability of taxi services.

Sangay Rabten, Thimphu

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