Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Petroleum product imports through the Birgunj customs point have continued an upward trend in the first six months of the current fiscal year, with total imports reaching Rs 90.06 billion, marking a year-on-year increase.
According to customs data, imports through the Birgunj border during the review period were Rs 2.75 billion higher than in the same six-month period of the previous fiscal year.
In the corresponding period last year, petroleum products worth Rs 87.31 billion had been imported through the same trade route.
The growth in imports has also translated into higher government revenue. In the first half of the current fiscal year, Rs 37.85 billion in revenue was collected from petroleum product imports via Birgunj. This represents a notable increase compared to the Rs 36.14 billion collected during the same period last fiscal year.
Information Officer at Birgunj Customs Office, Uday Singh Bista, said both the volume of petroleum imports and the associated revenue have shown a significant rise compared to the previous year.
The Birgunj customs point remains Nepal’s principal gateway for fuel imports, making the trend a key indicator of domestic fuel demand and broader economic activity.
A breakdown of the data shows that diesel accounts for the largest share of imports. In the six-month period, diesel imports totaled Rs 45.38 billion, generating Rs 19.85 billion in revenue.
Diesel is widely used in transportation, industrial operations, and construction, which often makes its import volume a proxy for economic momentum.
Petrol imports during the same period amounted to Rs 20.98 billion, contributing Rs 13.82 billion in revenue. Rising vehicle use and urban mobility demands are among the factors driving petrol consumption.
Similarly, liquefied petroleum gas (LPG) imports stood at Rs 14.79 billion, from which the government collected Rs 2.77 billion in revenue. LPG remains a primary cooking fuel for households across the country, and its steady import growth reflects sustained domestic consumption.
Customs officials attribute the overall rise in petroleum imports to increased transportation activity, infrastructure works, and stable supply channels. Seasonal demand patterns and cross-border trade dynamics also play a role in shaping import volumes.
The upward trend in petroleum imports has implications for Nepal’s trade balance, as fuel remains one of the country’s largest import items. At the same time, higher import volumes support government revenue through customs duties, value-added tax, and other levies imposed on fuel products.
With Birgunj serving as the main entry point for petroleum supplies from India, the performance of this customs office is closely watched by policymakers, energy planners, and economic analysts as an indicator of consumption patterns and fiscal inflows.
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