The import of petroleum products through Birgunj Customs has dropped significantly, along with the slowdown in the country's construction activities.
According to the Birgunj Customs Office, diesel and petrol imports through this checkpoint have decreased by over 25 percent. Birgunj, a key trade transit point, typically handles the highest volume of diesel and petrol imports into the country. In the first three months of the current fiscal year, a total of 135,518 kiloliters of diesel worth Rs 12.66 billion were imported via Birgunj.
Deepak Lamichhane, Chief Administrative Officer of the Birgunj Customs Office, stated that diesel imports have decreased by 25.33 percent compared to the same period last fiscal year. This decline has also led to a 27.43 percent drop in revenue collection.
At present, diesel is being imported through the Motihari-Amlekhgunj petroleum pipeline, while petrol is still transported via tankers. Pralayankar Acharya, the provincial chief of Nepal Oil Corporation at Amlekhgunj, noted that the decline in petroleum consumption is due to reduced infrastructure and development activities. He added that imports are expected to rise as construction and development projects pick up pace.
The shift towards electric vehicles has also contributed to the decreased consumption of petroleum products.
Roshan Dahal, general secretary of the Federation of Contractors' Association of Nepal (FCAN), highlighted additional challenges in the construction sector, such as delays due to the rainy season and government agencies' failure to make payments for completed projects. -- RSS