Kathmandu: The import of petroleum products has increased significantly in the first six months of the current fiscal year.

The import of petroleum products has risen by 101 per cent during the review period as compared to the same period last fiscal year.

Petroleum products worth Rs. 132.19 billion have been imported in the first six months of the current fiscal year against of Rs. 65.67 billion during the same period last fiscal year 2021/22, according to the statistics of the Department of Customs.

The country imported petroleum products worth Rs. 175.53 billion in the last fiscal year 2021/22.

The statistic shows that the import of petrol in terms of quantity has increased by 30 per cent, diesel by 10.23 per cent and liquefied petroleum gas (LPG) by 15 per cent during the review period as compared to same period last fiscal year.

About 371,820 kilolitres of petrol worth Rs. 29.27 billion, 830,273 kilolitres diesel worth Rs. 61.43 billion and 2,346,816 kilolitres of aviation fuel worth Rs. 5.33 billion have been imported during the first six months of the current fiscal year.

Similarly, about 8,252 kilolitres of kerosene worth Rs. 646 million and 264,604 tonnes of liquefied petroleum gas (LPG) worth Rs. 29.23 billion were imported during the review period.

In the first six months of the last fiscal year, around 284,079 kilolitres of petrol worth Rs. 12.96 billion, 753,201 kilolitres of diesel worth Rs.32.93 billion and 255,688 kilolitres of aviation fuel worth Rs.1.29 billion had been imported.

Similarly, 10,838 kilolitres of kerosene worth Rs. 436 million and 255,313 tonnes of LPG worth Rs. 14.03 billion had been imported during the first six months of last fiscal year.

The share of petroleum products in total import trade is 13.2 per cent.

The country imported goods worth Rs. 999.34 billion during the first six months of the current fiscal year.

Higher fuel import cost due to price hike in international market "Rising fuel price in the international market is one of the major reasons behind the increased import of petroleum products in terms of monetary value this fiscal year," said Binitmani Upadhyay, spokesperson of Nepal Oil Corporation.

He, however, said that the import of petroleum products in terms of quantity has also increased this year compared to last year as fuel consumption has been growing at around 10 per cent yearly.

The fuel consumption has been increasing at around 10-12 per cent annually in the normal year, he said. The import of fuel in terms of quantity had been affected in the last two years due to the impact of COVID-19.

The consumption of petroleum products had declined last year due to the impact of COVID-19 as development work was not in full swing. But now that economic activity has picked up, fuel consumption has risen, he said.

Significant increase in fuel price in the international market is also becoming a challenge to limit the country's trade deficit.

The NOC - monopoly petroleum supplier - has faced a loss of around Rs. 19 billion in the sale of petroleum products in the last six months due to rising prices in the international market, he said.

International crude oil prices rose steadily to around USD 91 a barrel while it was around USD 71 per barrel in mid-July, 2021.