Decline in diesel imports leads to revenue drop

PARSA, DECEMBER 12: Diesel imports through the Raxaul-Amlekhganj petroleum pipeline have decreased by 9.41% during the first four months of the current fiscal year, according to the Birgunj Customs Office. The decline in diesel imports has also resulted in a 15.16% drop in revenue collection.

In the first four months of the fiscal year 2024/25, 246,719 kiloliters of diesel worth Rs 21.84 billion were imported. In contrast, diesel imports amounted to Rs 30.17 billion during the same period last year.

Chief Customs Administrator Deepak Lamichhane stated that the reduction in imports of petroleum products, vehicles, and raw materials has directly impacted revenue collection. While diesel is imported through the pipeline, petrol is still being transported via tankers.

President of the Federation of Contractors’ Associations of Nepal, Ravi Singh, noted that the construction sector remained stagnant until Kartik (mid-October to mid-November) of the current fiscal year, leading to a decrease in diesel demand. He remarked, "The government must revitalize the construction sector; otherwise, capital expenditure will not increase."

Meanwhile, 142,865 kiloliters of petrol worth Rs 12.42 billion were imported during the first four months of the current fiscal year. In comparison, 129,126 kiloliters of petrol worth Rs 13.18 billion were imported during the same period last year.