Nepal’s import bills of petroleum alone surpasses total export earnings by Rs 51 billion

Published On: February 24, 2022 06:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 24: Nepal imported petroleum products worth Rs 182.02 billion in the first seven months of the current fiscal year, which was Rs 51 billion more than the country’s earnings from its total export in the period.

According to the Department of Customs (DoC), Nepal’s exports grew by 88.30 percent to Rs 131.65 billion during mid-July 2021 and mid-February 2022. Despite the government announcement to increase consumption of electricity to reduce the import of petroleum products, the import of fossil fuel has been on the rise every year.

Surging prices of petroleum products along with the weakening of Nepali currency against the US dollar has taken a toll on heavy drain out of the foreign currency of the landlocked country. Recently, the price of crude oil hit closer to $ 100 per barrel in the international market while the exchange rate of the Nepali rupee plunged to more than Rs 120 per USD.

As a result, the cost of petrol has reached a record high of Rs 145 per liter in the domestic market and diesel and kerosene each cost Rs 128 per liter.  This has taken a notable toll on consumer inflation.

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