Petroleum imports via Birgunj customs drop 25 pc

BIRGUNJ, PARSA: With the reduction in construction activities, the import of petroleum products via Birgunj Customs has significantly declined. 

According to the Birgunj Customs Office, diesel and petrol imports through this checkpoint have fallen by over 25%. Birgunj serves as a major trade transit point, importing the highest volume of diesel and petrol into the country.

During the first three months of the current fiscal year 2024/25, a total of 135,518 kilolitres of high-speed diesel worth Rs 12.66 billion were imported via Birgunj. Chief Administrator of the Customs Office, Deepak Lamichhane, said that high-speed diesel imports have decreased by 25.33% compared to the same period last fiscal year. The revenue collection has also dropped by 27.43% due to the decline in diesel imports.

Under the Motihari-Amlekhgunj petroleum pipeline project, high-speed diesel is imported through the pipeline, while petrol is transported via tankers. Pralayankar Acharya, Provincial Office Chief at Nepal Oil Corporation in Amlekhgunj, stated that the consumption of petroleum products has decreased due to a lack of infrastructure and development activities. He anticipates that imports will rise as infrastructure and development activities increase. Additionally, there has been a decline in the consumption of petroleum products due to the growing public interest in electric vehicles (EVs).

Roshan Dahal, General Secretary of the Federation of Contractors' Associations of Nepal (FCAN), complained that the construction sector has been unable to progress during the rainy season and that government agencies have not made payments for completed projects.