Petroleum import makes 16.6 percent of the total import by the country
KATHMANDU, July 13: Nepal spent Rs 292.77 billion to import petroleum products in the first 11 months of the current fiscal year, which was 88.7 percent more than the imported amount of fossil fuels during the review period last year.
The records with Nepal Rastra Bank (NRB) show that Nepal imported petroleum products of Rs 155.14 billion during mid-July and mid-May of the fiscal year 2020/21. In the same period this year, petroleum imports went up by Rs 137.63 billion.
Nepal spent over Rs 340 billion to import petroleum products in...
Despite the government announcement to reduce the consumption of petroleum products through various measures, the government’s effort has not been effective to yield the desired result. In the current fiscal year, the government enforced two-day weekends for about a month and reduced electricity tariffs to facilitate people replacing the use of petroleum products by electricity.
The NRB report shows that the country imported goods worth Rs 1.763 trillion during the review period, while the top 20 imports accounted for Rs 1.095 trillion. Petroleum products made 16.6 percent of the country’s total imports while their share in the top import list stood at 26.73 percent.
According to Nepal Oil Corporation (NOC), imports of petroleum products escalated due to the soaring price of the fossil fuels in the international market. In addition, the increased economic activities in the post-COVID period and rising price of US dollar against the Nepali currency has also impacted import expenses.
Citing an increasing financial loss due to excess expenditure on petroleum products, NOC has been suggesting the government to introduce measures to reduce the consumption of imported fuels. The state-owned oil monopoly has even recommended the government to impose a quota on petroleum consumption.
