Er.energyNP@Gmail.com

Due to conflicts in West Asian countries, fuel prices have been continuously rising. In addition, high taxes imposed on petroleum products under various headings have further increased fuel prices. In this situation, it appears that the government could provide relief to consumers by granting tax exemptions or reducing taxes on petroleum products in the short term.

According to Nepal Oil Corporation, taxes per liter amount to NPR 65.84 on petrol, NPR 48.35 on diesel, NPR 33.93 on kerosene, NPR 34.11 on aviation fuel, and NPR 287.31 per cylinder of cooking LPG gas.

In the market, petrol is priced at NPR 202 per liter and diesel at NPR 182 per liter. Rising fuel prices have impacted all sectors.

Madhav Timilsena, chairman of the Consumer Rights Research Forum, stated that as fuel prices rise and affect daily life, the high taxes on fuel are making it even more expensive. He emphasized that the government should reduce these taxes immediately to provide relief to consumers. Since rising fuel prices affect daily necessities and most sectors, he stressed that the government should focus on consumers rather than revenue.

Deputy Executive Director of the Corporation, Nagendra Sah, said that taxes collected at the customs point during fuel imports are directly deposited into the government’s account. As international fuel prices continue to rise, he urged consumers to reduce consumption.

NPR 86 Billion Revenue Collected

Nearly NPR 100 billion in revenue has been collected from petroleum transactions. According to the Oil Corporation, from Shrawan to Falgun of the current fiscal year 2082/83, fuel imports worth NPR 177.12 billion generated NPR 86.58 billion in revenue.

The corporation reported that during this period, NPR 28.12 billion was collected as customs duty, NPR 32.09 billion as Value Added Tax (VAT), NPR 4.73 billion as road maintenance fees, and NPR 2.36 billion as environmental charges. Similarly, NPR 15.70 billion was collected as infrastructure development tax, NPR 1.57 billion as green tax, and NPR 1 billion as income tax.

Per liter of petrol includes NPR 25.20 customs duty, NPR 10 infrastructure tax, NPR 1 green tax, NPR 4 road maintenance fee, and NPR 1.50 pollution charge.

Similarly, per liter of diesel includes NPR 12 customs duty, NPR 1 green tax, NPR 10 infrastructure development tax, NPR 2 road maintenance fee, and NPR 1.50 environmental pollution charge.

According to the corporation, the current purchase price per liter is NPR 153.78 for petrol, NPR 242.49 for diesel, NPR 197 for kerosene, and NPR 213 for domestic aviation fuel. A cylinder of gas costs NPR 1,690.

In the past three weeks, petrol prices have increased by NPR 40 per liter, diesel by NPR 45 per liter, and aviation fuel by NPR 124 per liter. Despite continuous price hikes, prices have not been adjusted accordingly, resulting in a loss of NPR 34.36 per liter on petrol, NPR 120.54 per liter on diesel, and NPR 416 per cylinder of cooking gas, according to the corporation.

The government has already decided to declare public holidays on Saturdays and Sundays to reduce fuel consumption. According to the corporation, daily consumption across the country is about 2.5 million liters of petrol and 5 million liters of diesel.