India has withdrawn all subsidy on cooking gas and kerosene being provided to Bhutan - arguably India's only unquestioned friend among its neighbours -creating a huge crisis in the tiny, landlocked kingdom and bringing the bilateral ties under strain.

Gas and kerosene prices have more than doubled in Bhutan, and predictably, this will hit the poor the hardest. The subsidy cut has come as Bhutan gave sign that it would give more importance to China irking many in New Delhi.