It is estimated that fuel consumption will decrease by about 10 percent after the government declared Sunday as a public holiday. According to the Nepal Oil Corporation, the country consumes 2.5 million liters of petrol, 5 million liters of diesel, and 45,000 tons of cooking gas daily. The corporation estimates that 10 percent of the total daily consumption of petrol and diesel, or 750,000 liters of fuel, will be saved during the holiday on Sunday. Nepal Oil Corporation Executive Director Chandika Bhatta informed that fuel consumption is estimated to decrease by about 10 percent after the additional holiday on Sunday. According to the corporation, at current prices, diesel worth 903.75 million rupees is consumed daily, while petrol worth 501.87 million rupees is consumed. Thus, fuel worth 1.4 billion 56 million rupees is being consumed daily. To reduce fuel consumption, the corporation has also suggested the government to operate an odd-even system in government and private vehicles, in addition to public and essential service vehicles.

‘To reduce fuel consumption in large quantities or save money, the odd-even system should be implemented in vehicles,’ said Chandika Bhatta, executive director of the corporation, ‘The decision to give holidays to reduce fuel consumption should be viewed positively. The government has small vehicles including cars and jeeps. This decision will reduce the consumption of petrol even if it is in small quantities.’

Currently, the increase in the price of petroleum products has increased the corporation’s losses. The corporation has more losses in diesel than in petrol. At the current price, diesel has a loss of Rs 120 per liter, petrol Rs 34 and cooking gas Rs 416.

In Nepal, diesel is consumed in transportation, public buses, construction sectors, etc. Petrol is consumed in two-wheelers, cars, jeeps, vans, etc. Most government vehicles consume petrol.

The Corporation has also recommended that only 200 liters of fuel be sold at a time for long-distance vehicles and a maximum of 50 liters for short-distance vehicles, and that petrol pumps sell only 5 liters of fuel at a time for motorcycles and 20 liters for small vehicles including cars and jeeps. The Corporation has stated that vehicles used for public transport and transportation should be operated at full capacity.

The supply chain of petroleum products in Nepal has also been affected due to the ongoing tensions in West Asia. The increase in the price of crude oil in the international market has already seen its impact in Nepal. Currently, the price of petrol in Nepal has reached Rs 202 per liter and the price of diesel and kerosene has reached Rs 182 per liter.