Import of petroleum products from Birgunj declines by 25 percent

PARSA, Oct 23: The slowdown in the country’s construction sector has led to a significant drop in the import of petroleum products through the Birgunj customs point. The Birgunj customs office has reported a 25 percent decrease in the import of diesel and petrol.

Birgunj is recognized as the customs point through which the highest amount of diesel and petrol enters the country among all entry points. During the first three months of the current Fiscal Year, a total of 135,518 kiloliters of high-speed diesel worth Rs 12.66 billion has been imported from here.

According to Deepak Lamichhane, the chief administrator of the customs office, the import of diesel during the same period of the current FY has decreased by 25.33 percent compared to the last FY’s three-month period. Along with the decrease in diesel imports, revenue collection has also dropped by 27.43 percent.

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Under the Motihari-Amlekhgunj petroleum pipeline project, diesel is imported through the pipeline, while petrol is brought in by tanker.

According to Pralayankar Acharya, head of the Nepal Oil Corporation's regional office in Amlekhgunj, the decrease in petroleum consumption is due to a slowdown in infrastructure and development activities. He believes that once these activities revive again, imports will increase. Additionally, the growing interest in electric vehicles among the general public has also contributed to the decline in petroleum consumption.

Roshan Dahal, General Secretary of the Federation of Contractors’ Associations of Nepal, expressed concerns that the construction sector has not gained the expected momentum due to the rainy season and the failure of government agencies to make payments for completed projects. He noted that the import of construction materials and equipment has decreased. However, he believes that development activities will become active again after the monsoon and festival season ends.

During the first three months of the current FY, the import of petrol has also declined. As of mid-October, a total of 74,712 kiloliters of petrol worth Rs 6.58 billion has been imported. In the same period last year, the import of petrol had decreased by 22.52 percent.