Government Cuts Fuel Benefits to Curb Spending and Address Supply Challenges

The government has decided to reduce fuel allowances provided to government employees and public office-bearers as part of efforts to control public expenditure and respond to ongoing fuel supply challenges.

The Ministry of Finance stated that the decision was taken in line with austerity measures aimed at maintaining fiscal discipline under the current economic context.

Finance Minister Dr. Swarnim Wagle revised the Work Operation Directives, 2081, in accordance with the Economic Procedures and Fiscal Responsibility Act, 2076 BS, introducing new limits on fuel-related benefits.

Under the revised provisions, secretaries and special-class officials will now receive 70 liters of fuel per month, down from the previous 125 liters. Similarly, fuel allocation for joint secretaries has been reduced from 100 liters to 50 liters per month. However, the fuel facilities for ministers and constitutional office-bearers will remain unchanged, according to the ministry.

Fuel support for central government offices has also been scaled back. Offices with up to 30 employees will now receive 35 liters of petrol and 50 liters of diesel, compared to the earlier allocation of 75 liters of petrol and 100 liters of diesel. The same limit will apply to offices with up to 50 employees.

Additionally, a new provision allows offices to receive 35 liters of petrol and 50 liters of diesel for every 100 employees, which is nearly half of the previous allocation.

Fuel allowances for two-wheelers have also been reduced. Previously, employees were entitled to 12 liters of petrol per month, but this has now been lowered to eight liters.

The government believes that these measures will contribute to reducing public spending while helping manage the current challenges arising from adverse conditions affecting fuel supply.