Most Spending on Diesel; Around 80 Billion Revenue from Petroleum Imports
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More than NPR 238.56 billion was spent on the import of petroleum products through Birgunj, the country’s main trade gateway, in the last fiscal year. This data, which shows that a large portion of the country’s energy needs is still dependent on imported fuel, indicates that the pressure on foreign currency reserves remains unchanged.
According to the annual statistics of the Birgunj Customs Office, the highest amount was spent on diesel imports, totaling NPR 132.34 billion. In the last fiscal year, 1,085,158 kiloliters of diesel were imported through this checkpoint, from which the government collected NPR 44.37 billion in revenue. Although the volume of diesel imports decreased by about 5 percent compared to the previous fiscal year, there was only a slight decrease in the import value. In the previous fiscal year, 1,150,000 kiloliters of diesel worth NPR 138 billion were imported.
The second largest imported fuel is petrol. In the last fiscal year, 471,000 kiloliters of petrol worth NPR 47.35 billion were imported. From this, the government collected NPR 25.37 billion in revenue. In the previous fiscal year, 453,000 kiloliters of petrol worth NPR 48.72 billion were imported.
A significant amount was also spent on the import of LPG. In the last fiscal year, the import of 285.9 million kilograms of LPG resulted in an outflow of NPR 33.52 billion. From this, the government collected NPR 6.28 billion in revenue. In the previous fiscal year, 318.9 million kilograms of LPG worth NPR 36.37 billion were imported.
During this period, the import of aviation fuel increased significantly. In the last fiscal year, 188,000 kiloliters of aviation fuel worth NPR 23.62 billion were imported. In the previous fiscal year, 180,000 kiloliters of aviation fuel worth NPR 16.14 billion were imported.
Conversely, the use of kerosene has continued to decline. Last year, 4,200 kiloliters of kerosene worth NPR 37 million were imported. In the previous fiscal year, 7,200 kiloliters of kerosene worth NPR 69 million were imported.
Overall, among the major petroleum products imported through the Birgunj checkpoint, diesel, petrol, and LPG account for the largest share. Data from the Birgunj Customs Office shows that the government collected more than NPR 80 billion in revenue from the import of these fuels alone.
According to economic analyst Manoj Upadhyaya, the high dependence on petroleum products for Nepal’s transportation, industry, and household energy means that the pressure on foreign currency reserves has not yet eased. He says that if the use of electric vehicles, renewable energy, and alternative fuels can be expanded, the large expenditure on petroleum imports can gradually be reduced.
