Petroleum products’ imports higher than total exports of Nepali goods
By Our Reporter
Nepal’s export sector has been dismally low over the years and it was no different in the first two months of the current fiscal year 2024/25.
Recent data shows that the country’s export revenue has not been enough even to cover even its fuel imports. The money spent to import fuel is higher by 50 per cent than money earned from the export trade.
According to trade statistics made public by the Department of Customs, the country has imported petroleum products, including petrol, diesel, kerosene, aviation fuel and liquefied petroleum products (LPG), worth about Rs. 37.47 billion from India during the first two months (mid-July to mid-August 2024) of the current fiscal year 2024/25.
The country exported goods only worth Rs. 25.09 billion during the first two months of the current fiscal year.
The exports have declined by 5.12 per cent during the first two months while the imports increased by 1.08 per cent to Rs. 262.54 billion.
Due to decline in export and increase in export, trade deficit has increased by 1.78 per cent to Rs. 237.44 billion during the first two months of the current fiscal year.
The share of petroleum products in the total import is highest among the other imported items. Its share in the total import during the review period is 14.27 per cent.
It shows that Nepal is spending a huge amount for the import and consumption of petroleum products.
The limited industrial capacity, reliance on a narrow range of export products, and increased competition in regional markets are blamed for the poor export trade of Nepal.
Petroleum products worth Rs. 37.26 billion had been imported in the first two months of the last fiscal year.
In the first two months of the current fiscal, the import of petrol, diesel, aviation fuel and kerosene has decreased while the import of liquefied petroleum gas has increased.
Around 120,131 kilolitres (kl) of petrol worth Rs. 11.06 billion, 144,724 kl of diesel worth Rs. 13.64 billion and 27,809 kl of aviation fuel worth Rs. 2.67 billion has been imported in the first two months of the current fiscal year.
The country had imported 112,182 kl of petrol worth Rs. 11.30 billion, 151,371 kl of diesel worth Rs. 15.74 billion and 27,276 kl of aviation fuel worth Rs. 2.76 billion in the first two months of the last fiscal year.
The import of cooking gas (LPG) has increased by about 29 per cent in the first two months of the current fiscal year as compared to the same period last fiscal year.
About 88,538 tonnes of LPG worth Rs. 9.42 billion has been imported in the first two months of the current fiscal year.
The country had imported 88,271 tonnes of LPG worth Rs. 7.32 billion in the first two months of the last fiscal year.
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