Oil import bill down by Rs15.36 billion. But there is little to cheer about

Nepal’s petroleum imports dropped by 4.35 percent to Rs337.34 billion in the last fiscal year ended July 15, due to lower international rates.

Official data showed that the country continues to be dependent on fossil fuel despite the surge in electric vehicles (EVs) and more electricity generation. The imports of three oil products—diesel, kerosene, and liquified petroleum gas—have dropped by Rs15.36 billion combined, mainly in terms of value.

A breakdown of the oil import bills shows diesel imports dropped by 6.36 percent to Rs143.97 billion, which translates to a decrease of Rs9.

79 billion. However, in terms of quantity, Nepal imported 1.41 million kilolitres of diesel in the last fiscal year, a marginal drop of 2,946 kilolitres compared to the previous fiscal year's imports.

(1 kilolitre = 1,000 litres). Similarly, petrol imports in terms of value dropped by Rs1.25 billion to Rs68.

1 billion in the last fiscal year. But in terms of quantity, imports increased by 7,124 kilolitres to 687,931 kilolitres. Likewise, imports of liquified petroleum gas, popularly known as cooking gas, dropped by Rs2.

53 billion to Rs55.61 billion. But the quantity of imports increased by 9,863 tonnes to 524,204 tonnes.

“From no angle can we say that the rise in electricity generation and adoption of EVs have cut down on petroleum consumption,” said Manoj Kumar Thakur, spokesperson of Nepal Oil Corporation. “Petroleum prices jumped because of the Russia-Ukraine war that started in Februa.