Oil imports jump 35pc to Rs 70b
KATHMANDU -
Nepal’s oil imports amounted to more than Rs 70 billion in the last fiscal year 2010-11, a 35 percent jump from Rs 51.55 billion in the previous fiscal.
According to Nepal Rastra Bank (NRB), petroleum products are the country’s largest import, with annual spending equivalent to 21 percent of the national budget.
Nepal Oil Corporation (NOC) has projected that the oil import bill is likely to touch Rs 100 billion in the current fiscal year based on current demand and increasing prices in the international market. The import value of oil in the last fiscal year is based on the average price of US$ 84-120 per barrel in the international market. In the previous fiscal year, the value was based on the average price of US$ 74-80 per barrel.
“Fuel prices in the international market in the last six months remained in the region of US$ 110 per barrel, resulting in a vastly enlarged import bill although the quantity has not increased,” said NOC managing director Digambar Jha.
According to NOC, consumption rose 8.89 percent to 1.143 million kilolitres (kl) in the last fiscal year from 1.050 kl in the previous year. The state-owned monopoly imported 99,990 kl of aviation turbine fuel (ATF) in the last fiscal year, up 20.73 percent from 82,824 kl in the previous year.
Imports of petrol and liquefied petroleum gas (LPG) soared 15.26 percent and 12.83 percent respectively to 187,762 kl and 159,286 tons respectively. Diesel was up 7.21 percent to 651,920 kl from 608,065 kl in the previous fiscal year.
Jha said that oil imports had increased only nominally despite a growth in demand due to strikes by tanker operators, a cut in purchases by NOC for lack of cash and a timely monsoon leading to reduced load-shedding.
The government had injected Rs 6 billion into NOC in the last fiscal year to enable it to pay its import bills while it earned Rs 15.60 billion in tax revenue from the corporation.
With persistent power cuts and a swelling number of automobiles and motorcycles, fuel imports have been on a constant upswing. “The only way to stop rising imports is to produce sufficient electricity,” Jha said.
He added that consumption of LPG and diesel could be reduced by 75 percent and 50 percent respectively if the country could be made self-sufficient in electricity. Diesel makes up 60 percent of the country’s total fuel imports.
Oil imports in the last five years
Fiscal Year>> Total Quantity (in kl) >> Change (in %)
2006-07 >> 752,466 >> 0.28
2007-08 >> 725,622 >> -3.56
2008-09 >> 887,430 >> 22.30
2009-10 >> 1,050,528>> 18.38
2010-11 >> 1,143,970 >> 8.89
Product-wise import
Fiscal year >> Petrol >> Diesel >> Kerosene >> LPG >> ATF
(in kl) >> (in kl) >> (in kl) >> (in tons) >> (in kl)
2006-07 >> 98,435 >> 299,419>> 192,576 >> 93,562 >> 63,650
2007-08 >> 101,624 >> 303,212 >> 152,167 >> 96836 >> 68,534
2008-09 >> 128,372 >> 489,219 >> 77,798 >> 115,812 >> 73,660
2009-10 >> 162,902 >> 608,065 >> 52,714 >> 141,171 >> 82,824
2010-11 >> 187,762 >> 651,920 >> 43,350 >> 159,286 >> 99,990
Source: Kantipur
Nepal’s oil imports amounted to more than Rs 70 billion in the last fiscal year 2010-11, a 35 percent jump from Rs 51.55 billion in the previous fiscal.
According to Nepal Rastra Bank (NRB), petroleum products are the country’s largest import, with annual spending equivalent to 21 percent of the national budget.
Nepal Oil Corporation (NOC) has projected that the oil import bill is likely to touch Rs 100 billion in the current fiscal year based on current demand and increasing prices in the international market. The import value of oil in the last fiscal year is based on the average price of US$ 84-120 per barrel in the international market. In the previous fiscal year, the value was based on the average price of US$ 74-80 per barrel.
“Fuel prices in the international market in the last six months remained in the region of US$ 110 per barrel, resulting in a vastly enlarged import bill although the quantity has not increased,” said NOC managing director Digambar Jha.
According to NOC, consumption rose 8.89 percent to 1.143 million kilolitres (kl) in the last fiscal year from 1.050 kl in the previous year. The state-owned monopoly imported 99,990 kl of aviation turbine fuel (ATF) in the last fiscal year, up 20.73 percent from 82,824 kl in the previous year.
Imports of petrol and liquefied petroleum gas (LPG) soared 15.26 percent and 12.83 percent respectively to 187,762 kl and 159,286 tons respectively. Diesel was up 7.21 percent to 651,920 kl from 608,065 kl in the previous fiscal year.
Jha said that oil imports had increased only nominally despite a growth in demand due to strikes by tanker operators, a cut in purchases by NOC for lack of cash and a timely monsoon leading to reduced load-shedding.
The government had injected Rs 6 billion into NOC in the last fiscal year to enable it to pay its import bills while it earned Rs 15.60 billion in tax revenue from the corporation.
With persistent power cuts and a swelling number of automobiles and motorcycles, fuel imports have been on a constant upswing. “The only way to stop rising imports is to produce sufficient electricity,” Jha said.
He added that consumption of LPG and diesel could be reduced by 75 percent and 50 percent respectively if the country could be made self-sufficient in electricity. Diesel makes up 60 percent of the country’s total fuel imports.
Oil imports in the last five years
Fiscal Year>> Total Quantity (in kl) >> Change (in %)
2006-07 >> 752,466 >> 0.28
2007-08 >> 725,622 >> -3.56
2008-09 >> 887,430 >> 22.30
2009-10 >> 1,050,528>> 18.38
2010-11 >> 1,143,970 >> 8.89
Product-wise import
Fiscal year >> Petrol >> Diesel >> Kerosene >> LPG >> ATF
(in kl) >> (in kl) >> (in kl) >> (in tons) >> (in kl)
2006-07 >> 98,435 >> 299,419>> 192,576 >> 93,562 >> 63,650
2007-08 >> 101,624 >> 303,212 >> 152,167 >> 96836 >> 68,534
2008-09 >> 128,372 >> 489,219 >> 77,798 >> 115,812 >> 73,660
2009-10 >> 162,902 >> 608,065 >> 52,714 >> 141,171 >> 82,824
2010-11 >> 187,762 >> 651,920 >> 43,350 >> 159,286 >> 99,990
Source: Kantipur
