Import of fuel via Birgunj down by 24 percent

PARSA, OCTOBER 23: Petroleum imports through Birgunj, Nepal’s primary customs point for fuel, have dropped significantly due to a slowdown in construction activities. In the first quarter of the current fiscal year, Nepal imported 135,518 kiloliters of high-speed diesel worth Rs 12.66 billion. The very import volume is 25.33 percent less compared to the corresponding period last year. 

Similarly, during the review period, 74,712 kiloliters of petrol, valued at Rs 6.58 billion, was imported,  a decrease of 22.52 percent. The average decline in the import volume of petrol and diesel stands at 23.93 percent.

 ​​​​​​​According to the Birgunj Customs Office, because of the downturn in fuel imports, customs revenue also went down by 27.43 percent.

Pralayankar Acharya, head of the Nepal Oil Corporation’s Amlekhganj office, attributes the import decline of petrolem to fewer infrastructure and development activities. He expects fuel demand to rise as construction resumes after the monsoon and festive seasons. Additionally, the growing popularity of electric vehicles has contributed to the reduced consumption of petroleum.

Roshan Dahal, general secretary of the Federation of Contractors, mentioned that delayed payments by government bodies for completed projects, coupled with the monsoon season, have slowed construction activities. However, he believes that development work will gain momentum in the coming months, which could increase demand for petroleum products.

This trend reflects the close link between economic activity and energy consumption in Nepal.

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