Nepal’s import bill for petroleum products decreased by NPR 11.07 billion in the last fiscal year, even though the volume of fossil fuel imports rose. Data from the Department of Customs (DoC) shows that petroleum products worth NPR 267.68 billion were imported in FY 2023/24, down from NPR 278.75 billion in FY 2022/23, marking a 4% reduction in import expenditure.
A major portion of the savings came from a NPR 10 billion reduction in diesel import costs, dropping from NPR 153.76 billion in the previous year to NPR 143.97 billion last year. Similarly, the cost of importing cooking gas decreased from NPR 58.15 billion to NPR 55.61 billion. However, the import cost of petrol rose from NPR 66.84 billion to NPR 68.10 billion.
Manoj Thakur, spokesperson for the Nepal Oil Corporation (NOC), attributed the decrease in import expenses to lower international fuel prices during the period, despite an increase in the volume of imports. According to the DoC, petrol imports grew from 1,408,494 kiloliters to 1,411,440 kiloliters.
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The increase in diesel imports has been linked to inadequate electricity supply to the manufacturing sector, with entrepreneurs criticizing the Nepal Electricity Authority for unscheduled power outages affecting production. Additionally, petrol imports rose from 680,000 kiloliters to 687,931 kiloliters, and cooking gas imports increased from 514.3 million kilograms to 524.2 million kilograms.
Analysts note that the rise in four-wheeler purchases, driven by lifestyle changes, has contributed to higher petrol import costs, indicating that the rise in electric vehicle imports has not significantly replaced petrol-based cars. DoC statistics show that Nepal imported 11,701 electric vehicles in FY 2023/24, nearly three times the amount from the previous year.
