India to restore kerosene and LPG subsidy to Bhutan

Screenshot_1Giving a significant relief , especially its 12 % poor, India has decided to restore the subsidy on cooking gas and kerosene by the first week of August 2013. The Ministry of External Affairs claimed that the Petroleum Ministry misinterpreted the Foreign Office’s request for review of subsidies and there was no political consideration behind this.

How to Political Analysts see India’s move to restore kerosene and LPG subsidy to Bhutan?

Many political analysts see this as a step taken to affect the outcome of the recently held polls in Bhutan. India was not happy with Bhutan under the rule of Druk Phuensum Tshogpa (DPT) and its Prime Minister Jigmey Thinley who was seeking Chinese support for a non-permanent seat in the United Nations Security Council (UNSC). Bhutan without taking India into confidence held two rounds of talks with the Chinese once in Thimphu and then a summit in Rio in order to settle its border.

India’s withdrawal of the subsidy led to substantial increase in the prices of LPG and kerosene. With the People’s Democratic Party (PDP) winning the elections it was claimed that India was successful in making high LPG and kerosene prices a poll issue as it added to the charges of economic mismanagement.