September 15: Nepal imports most of the petroleum products required for the country through Birgunj customs. However, the import of petroleum products from this customs point has declined in the first month of the current fiscal year compared to the corresponding period of last fiscal year.
Although the quantity of petroleum products imported into the country has declined the cost incurred has increased during the review month.
According to the Department of Customs, the cost of importing petroleum products has increased due to the rise in fuel prices in the international market. This has also resulted in a decline in imports.
The country spent Rs 16.6 billion for the import of petroleum products from this customs point. During the corresponding period of last fiscal year, Rs 11.4 billion was spent for the import of petroleum products.
The state-owned Nepal Oil Corporation incurred 45 percent more cost for the import of fuel in the first month of the current fiscal year compared to the corresponding period of last fiscal year.
The import of diesel and petrol has declined this year. Among different kinds of fuel, diesel is consumed the most in Nepal.
According to the Birgunj Customs, Nepal spent a total of Rs 6.87 billion to import 50,125 kiloliters of diesel during the review month. During the corresponding period of last fiscal year, the country had spent Rs 4.81 billion to import 69,180 kilolitres of diesel.
Likewise, Nepal spent Rs 3.69 billion to import 31,620 kilolitres of petrol in the first month of the current fiscal year. Last year, the NOC had spent Rs 2.43 billion in the same month to import 32,468 kilolitres of petrol.
Similarly, the import of coal, which is used as a raw material for producing cement, has also declined significantly. During the first month of last fiscal year, the importers had brought a total of 53.6 million kilograms of coal worth Rs 770 million but this year, only 44.6 million kilograms of coal worth Rs 1.23 billion was imported into the country.
The import of liquefied petroleum gas (LPG) has increased marginally. The country imported 22.64 million kg of LPG worth Rs 2.91 billion in the first month of the current fiscal year against 22.31 million kg of cooking gas worth Rs 2.1 billion during the corresponding period of last fiscal year.