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The Ministry of Finance has decided to cut fuel facilities provided to government employees and officials as part of austerity measures aimed at easing mounting fiscal pressure.

Finance Minister Dr Swarnim Wagle approved the decision, citing the need to shield the economy from a deepening fuel crisis.

According to the ministry, the move comes in response to a sharp rise in international petroleum prices, supply constraints, and a shortfall in revenue collection in the current fiscal year. The government has sought to curb public expenditure to maintain fiscal discipline.

Invoking provisions under Sections 20 and 24 of the Financial Procedures and Fiscal Responsibility Act, 2076 BS, the ministry has amended fuel-related provisions under Point No. 49 of the ‘Operational Guidelines, 2081’.

Under the revised provisions, secretaries and special class officials will now receive 70 litres of fuel per month, down from 125 litres. Similarly, joint secretaries will see their allocation reduced from 100 litres to 50 litres.

Ministers and constitutional office-bearers, however, will continue to receive fuel facilities in accordance with existing laws.

Fuel allocations for pool vehicles at central-level offices have also been reduced. Offices with up to 30 employees will now receive 35 litres of petrol and 50 litres of diesel, down from 75 litres and 100 litres respectively.

Likewise, offices with an additional 50 employees will receive the same reduced quota of 35 litres of petrol and 50 litres of diesel. For every additional 100 employees, the allocation has been cut to 35 litres of petrol and 50 litres of diesel, from the previous 75 litres of petrol and 100 litres of diesel.

The ministry has also reduced fuel entitlements for two-wheelers, lowering the monthly allocation from 12 litres to 8 litres.