KATHMANDU: Nepal's import bill for petroleum products declined by Rs 11.07 billion in the last fiscal year despite an increase in the volume of imported fossil fuels. According to the Department of Customs (DoC), petroleum products worth Rs 267.68 billion were imported in FY 2023/24, compared to Rs 278.75 billion in FY 2022/23, indicating a four percent reduction in expenses.

The import bill for diesel notably decreased by around Rs 10 billion, with imports valued at Rs 143.97 billion in the last fiscal year, down from Rs 153.76 billion in the previous year. Similarly, the cost of importing cooking gas dropped from Rs 58.15 billion to Rs 55.61 billion. However, the import bill for petrol rose to Rs 68.10 billion from Rs 66.84 billion.

Manoj Thakur, spokesperson for the Nepal Oil Corporation (NOC), attributed the decline in import expenses to a drop in international fuel prices during the review period, despite an increase in the import volume. The DoC reported an increase in petrol imports to 1,411,440 kiloliters from 1,408,494 kiloliters, and an increased diesel import volume due to inadequate electricity supply to the manufacturing sector.

The import of cooking gas also saw a rise to 524.2 million kg from 514.3 million kg, and petrol imports increased to 687,931 kiloliters from 680,000 kiloliters. Analysts noted that the increased purchase of four-wheelers due to lifestyle changes contributed to higher petrol import expenses, while the increase in electric vehicle imports did not significantly replace petrol-based cars. The DoC reported that Nepal imported 11,701 units of electric vehicles in FY 2023/24, nearly three times the number imported in the previous fiscal year.