Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The import of diesel from Birgunj has declined by 9.41 percent in the first four months of the current financial year, according to data from the Birgunj Customs Office. This significant drop has also impacted revenue collection, which has decreased by 15.16 percent compared to the same period last year.
In the fiscal year 2081/82, 246,719 kiloliters of diesel worth NPR 21.84 billion were imported during the first four months. However, during the same period last year, diesel imports amounted to NPR 30.18 billion.
Chief Customs Administrator Deepak Lamichhane attributed this decline to a reduction in the import of petroleum products, vehicles, and raw materials. He highlighted that the drop in diesel imports has directly affected revenue collection, raising concerns over achieving fiscal targets.
Diesel is primarily imported via the Motihari-Amlekhganj petroleum pipeline, whereas petrol continues to be transported by tankers.
Construction Sector Stagnation Blamed for Diesel Import Decline
Ravi Singh, President of the Federation of Nepalese Construction Professionals, stated that the ongoing stagnation in the construction sector until October has contributed to the reduced demand for diesel. “If the government does not take steps to revive the construction sector, capital expenditure will remain sluggish,” he warned.
Petrol Imports See a Mixed Trend
In contrast to diesel, the import of petrol has shown a marginal increase in quantity but a decline in total value. During the first four months of the current financial year, 142,865 kiloliters of petrol worth NPR 12.42 billion were imported, compared to 129,126 kiloliters worth NPR 13.18 billion in the same period last year.
The decline in the overall value of petroleum imports, despite fluctuating volumes, indicates changes in international fuel prices and demand patterns within Nepal.
Need for Government Intervention
The decline in diesel imports and the stagnation of the construction sector underline the need for government intervention to stimulate economic activities. Experts warn that without revitalizing sectors like construction, the country’s capital expenditure and overall economic growth could face significant challenges.
This trend raises questions about the country’s ability to meet revenue targets and maintain steady economic momentum, emphasizing the need for strategic fiscal and sectoral policies.
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