Government Cuts Customs Duty on Petroleum Products by 50% Amid Rising Global Prices

The Government of Nepal has decided to provide a 50 percent waiver on customs duties imposed on petroleum products, in a move aimed at easing the burden of rising fuel prices.

A meeting of the Council of Ministers held today approved a reduction in both customs duty and infrastructure development tax on petrol, diesel, and kerosene by half. The decision comes as international fuel prices surge due to escalating conflict in the Middle East.

Officials said the measure is intended to help stabilize domestic fuel prices and provide relief to consumers and businesses affected by the global price hike. Nepal, which relies entirely on imports for petroleum products, has been particularly vulnerable to fluctuations in international markets.

The government believes that the partial tax waiver will help mitigate inflationary pressure and support economic stability, especially in sectors heavily dependent on fuel, such as transportation and industry.

Authorities are expected to monitor the global situation closely and may introduce further measures if fuel prices continue to rise.