How much has the consumption of petroleum products and prices declined over the past two years?

For the past two years, there has been a steady decline in the cost of petroleum products.

In the Kathmandu Valley, the price of diesel per liter was fixed at 192 rupees on June 6, 2079. Petrol was fixed at 199 rupees.

Both the growth in Nepal and the prices on the global market were continuing to rise at that time. But following a flurry of disagreements, the government began lowering the cost through tax adjustments. The price of diesel was lowered by 29 rupees and the price of gasoline by 20 rupees per liter on June 12, 2079.

Following that, both in Nepal and on the global market, the price of petroleum products has been steadily declining.

The cost of gasoline is currently 40 rupees cheaper per liter, or 159 rupees, than it was on June 6, 2079. Diesel now costs 146 rupees per litre, or 46 rupees less. The cost of gasoline and diesel has dropped by 24% in just two years.

The use of petroleum products is declining at the same time that prices are dropping so sharply. The use of petroleum products, particularly diesel, has been shown to be declining this year as well. During the current fiscal year, Nepal Oil Corporation purchased diesel worth 13.64 billion rupees in July and August.

This is 13.35 percent less than what was imported in the previous fiscal year's July and August. In terms of both price and quantity, there has been a 4% decline in the import of diesel.

Gas imports are also declining. Petrol imports were valued at 11.3 billion rupees in the first two months of the previous fiscal year, while they were just 11.6 billion rupees in the same period this year. This year has seen a notable increase in the import of gas.

Nine billion 42 million rupees worth of gas have been imported so far this year, compared to seven billion 320 million rupees in the first two months of the previous year. Although the price of gas imports has increased by 28%, the import volume has remained unchanged from the previous year. There is a decline in the import of other petroleum goods, such as aviation fuel.

Over the past two fiscal years, there has been a decrease in the importation of gasoline, diesel, and gas.

In Nepal, the most commonly utilized imported materials are gasoline, diesel, and gas. The majority of these three products are regarded as industrial raw materials. extensively employed in many sectors, including transportation.

In the ten years before 2079, there was a yearly increase in petroleum product imports of 18%. The gasoline import has been steadily declining over the past two fiscal years, and this trend has continued into the first two months of the current fiscal year.

Industry insiders claim that the ongoing decline in demand is the reason for the decline in manufacturing capacity. There has also been a decrease in the usage of petroleum products, which are extensively utilized in the transportation and industrial sectors.

The Confederation of Nepal Industry conducted a study which revealed a 13.5 percent reduction in the demand for items produced by the manufacturing sector in the 2080/81 financial year. According to businesspeople, the decline in industrial activity and the halting of construction projects have resulted in a decrease in fuel usage.

Based on statistical data, the construction industry is presently experiencing a recession. The construction industry has had negative growth rates for the past two fiscal years, according to the Central Statistics Office.

Diesel is used 60% in transportation and other sectors and 40% in the industrial and construction sectors, according to petroleum dealers. It is believed that only twenty to twenty-five percent were used for industrial and building purposes last year. Even now, relatively little diesel is used in the building industry.

It's expected that the rise in electricity use in recent years may have contributed to a decline in the consumption of petroleum products. The government's stated goal is to increase electricity use while decreasing petroleum product consumption. In general, it appears that households in metropolitan regions are using more electricity.

The per capita use of electricity by the fiscal year 2077–2078 was 240 units. As to the Economic Survey 2081, it was 441 units last year. In this sense, it is also believed that the primary driver behind the decline in petroleum product usage is electricity.

Similarly, customs authorities claim that the drop in pricing in the border Indian market relative to Nepal has also had an impact on petroleum product imports.