Significant Drop in Petroleum Imports at Birgunj Customs Amidst Construction Slowdown

The ongoing slowdown in construction activities across the country has led to a notable decline in the import of petroleum products through the Birgunj Customs checkpoint. Recent data from the Birgunj Customs Office indicates that imports of diesel and petrol have dropped by over 25 percent.

Birgunj, recognized as the primary trade transit point for petroleum imports in Nepal, has seen a significant reduction in the volume of diesel and petrol entering the country. In the first three months of the current fiscal year, a total of 135,518 kilolitres of high-speed diesel valued at Rs 12.66 billion was imported through this customs point. However, the chief administrator of the Customs Office, Deepak Lamichhane, reported that the import of high-speed diesel has decreased by 25.33 percent compared to the same period last fiscal year.

This drop in imports has also had a direct impact on revenue collection, which has seen a decrease of 27.43 percent due to reduced diesel imports.

The Motihari-Amlekhgunj petroleum pipeline project has facilitated high-speed diesel imports through the pipeline, while petrol is transported via tankers. Pralayankar Acharya, the Provincial Office Chief at Amlekhgunj of the Nepal Oil Corporation, noted that the overall consumption of petroleum products has diminished due to inadequate infrastructure and a slowdown in development activities. However, he is optimistic that imports will rise as infrastructure projects gain momentum.

Additionally, the trend toward electric vehicles has further contributed to the decreased consumption of petroleum products.

Roshan Dahal, General Secretary of the Federation of Contractors' Association of Nepal (FCAN), expressed concerns regarding the construction sector's inability to gain traction during the rainy season, compounded by delays in payments for completed projects from government agencies. This stagnation in construction is a significant factor contributing to the reduced demand for petroleum products in the country.