Despite smooth electricity supply, country’s dependency on fossil fuel has not decreased. “The share of import bills of petroleum products still accounts for 20 per cent of the total import bill worth Rs 207.41 billion,” according to the central bank.
According to Current Macroeconomic Situation of three months, Nepal paid Rs 41.36 billion – during mid July-mid October of the current fiscal year – for petroleum import, Rs 8.22 billion less, from Rs 49.58 billion in the same period of the last fiscal year 2018-19.
But the import bill of petroleum products drop is not due to less consumption rather due to falling price in the international market that determines the price in the domestic market. Nepal spent 16.6 per cent less in import of petroleum products – in the first three months of the current fiscal year 2019-20 compared to the same period last fiscal year – though the import value has increased by 7 per cent.
Though, the import bill – in monetary value – has dropped, the consumption volume has gone up, according to the data of Nepal Oil Corporation (NOC) that revealed that the import volume of fuel including petrol, diesel, kerosene, air turbine fuel and cooking gas increased to 789,144 kiloliters (kl) from 736,105 kl in the same period of the last fiscal year.
The import value is down also due to the variation of the exchange rate of the Nepali currency against the US dollar. The price of the petroleum products depends on the price in the international market.
According to the NOC, price of crude oil in the international market had swelled to $86 per barrel in October from $65 per barrel last July. However, the petroleum prices in the same period this year dropped to around $67 per barrel.
Though, the monetary value of import is less, the volume – especially of diesel – has not gone down. Demand for diesel is rising in the recent days due to construction-related works in hydropower projects unlike the demand from industrial sectors earlier, according to state oil monopoly. “In the first quarter, import of petrol increased to 183,026 kl from 160,846 kl, diesel increased to 412,563 kl from 393,601 kl while import of cooking gas also surged to 127,628 tonnes from 116,546 tonnes in the same period of the last fiscal year,” the NOC data revealed.
According to Current Macroeconomic Situation of three months, Nepal paid Rs 41.36 billion – during mid July-mid October of the current fiscal year – for petroleum import, Rs 8.22 billion less, from Rs 49.58 billion in the same period of the last fiscal year 2018-19.
But the import bill of petroleum products drop is not due to less consumption rather due to falling price in the international market that determines the price in the domestic market. Nepal spent 16.6 per cent less in import of petroleum products – in the first three months of the current fiscal year 2019-20 compared to the same period last fiscal year – though the import value has increased by 7 per cent.
Though, the import bill – in monetary value – has dropped, the consumption volume has gone up, according to the data of Nepal Oil Corporation (NOC) that revealed that the import volume of fuel including petrol, diesel, kerosene, air turbine fuel and cooking gas increased to 789,144 kiloliters (kl) from 736,105 kl in the same period of the last fiscal year.
The import value is down also due to the variation of the exchange rate of the Nepali currency against the US dollar. The price of the petroleum products depends on the price in the international market.
According to the NOC, price of crude oil in the international market had swelled to $86 per barrel in October from $65 per barrel last July. However, the petroleum prices in the same period this year dropped to around $67 per barrel.
Though, the monetary value of import is less, the volume – especially of diesel – has not gone down. Demand for diesel is rising in the recent days due to construction-related works in hydropower projects unlike the demand from industrial sectors earlier, according to state oil monopoly. “In the first quarter, import of petrol increased to 183,026 kl from 160,846 kl, diesel increased to 412,563 kl from 393,601 kl while import of cooking gas also surged to 127,628 tonnes from 116,546 tonnes in the same period of the last fiscal year,” the NOC data revealed.
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