KATHMANDU, Feb 2: The import of diesel and petrol declined in the first half of the current fiscal year, thanks to the ongoing economic slowdown and people’s aspiration to switch to electric vehicles (EVs).
The records with the Department of Customs (DoC) show that the import of diesel went down 18.22 percent during mid-July 2023 and mid-January 2024 compared to the same period in the last fiscal year. In monetary value, the country’s import expenses on diesel declined by Rs 12.12 billion in the first half of FY 2024/25.
According to the DoC, Nepal imported diesel worth Rs 54.36 billion, down from Rs 66.49 billion in the corresponding period of last FY. Quantity-wise, the imported volume also plunged to 610,943 kiloliters from 618,356 kiloliters. Due to this reason, the government’s customs revenue from the import of petroleum products also declined to Rs 24.26 billion from Rs 25.28 billion.
Slow development work along with an increase in the number of EVs for public transport, among others, have been attributed to the decline in diesel imports.
Manoj Kumar Thakur, spokesperson for the state-owned Nepal Oil Corporation, told Republica that a decline in development projects resulted in reduced imports of diesel, which is primarily used as the fuel for public transport and operation of equipment in the construction sector.
As per the government records, the construction sector has witnessed negative growth since the last two quarters of the fiscal year 2023/24. The growth of this sector stood at a negative 0.3 percent even in the first three months of the current FY.
In addition, the inadequate capital expenditure also affected the import of diesel. In the review period, the government utilized just 16.16 percent of Rs 352.35 billion allocated under the heading.
Likewise, Nepal imported 5,480 electric four-wheelers worth Rs 13.19 billion in the past six months. In the corresponding period last year, a total of 5,107 electric four-wheelers with a value of Rs 12.73 billion were imported into Nepal.
Thakur said the difference in diesel prices in Nepal and India and the decline in loadshedding also helped in the reduction of imports of fossil fuel. According to Thakur, the NOC spokesperson, diesel prices in India are cheaper compared to that in Nepal. “In this regard, the cargo trucks that used to fill diesel in Nepali land, now get it done in India,” he said.
Meanwhile, the import of petrol also declined by 5.2 percent. According to the DoC, Nepal imported petrol worth Rs 32.15 billion, down from Rs 33.92 billion in the corresponding period of last FY.