Nepal Petroleum Imports Surge via Kakarbhitta Border

Nepal petroleum imports surge

4th December 2025, Kathmandu

Nepal’s eastern border point, Kakarbhitta, has experienced a significant surge in Nepal petroleum imports during the first four months of the current fiscal year (FY) 2025/26.

Nepal petroleum imports surge

The value of these imports surpassed Rs 6.02 billion, showcasing growing domestic energy demand. This increase not only meets consumption needs but also provides a substantial boost to government revenue collection.

Record Import Figures Unveiled

Petroleum products valued at Rs 6,027,645,000 entered Nepal through Kakarbhitta, according to the Mechi Customs Office. These essential imports include various fuels: petrol, diesel, LPG, aviation turbine fuel (ATF), and kerosene.

Year-Over-Year Growth in Imports and Revenue

This fiscal period’s import total represents a notable increase compared to the same four months of the last fiscal year. Customs Information Officer Ishwar Kumar Humagain confirmed that the imports rose by Rs 119 million, equating to a 2.01 percent growth.

The rise in import volume directly and positively impacted government earnings. Revenue collected from petroleum products grew by 2.90 percent, adding an extra Rs 84 million to the national coffers. The Customs Office collected a total of Rs 2.96 billion in revenue just from these products during the reporting period.

Details of Fuel Product Imports

The Mechi Customs Office provided a detailed breakdown of the imported petroleum products, highlighting the substantial quantities of fuel required to power the nation’s economy and households:

• Petrol: A total of 35,156 kiloliters of petrol was imported, valued at Rs 3.10 billion.

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• Diesel: 18,408 kiloliters of diesel were brought in, carrying a cost of Rs 1.74 billion.

• LPG (Liquefied Petroleum Gas): This essential cooking gas accounted for 8,557 metric tons of imports, valued at Rs 826 million.

• Aviation Turbine Fuel (ATF): The aviation sector’s fuel need translated to 2,908 kiloliters of ATF, worth Rs 263 million.

• Kerosene: 508 kiloliters of kerosene were imported, with a value of Rs 46 million.

Factors Driving the Import Spike

The Customs Office attributes the significant jump in petroleum imports primarily to two key factors. The nation’s rising domestic demand for energy products is a major contributor, driven by economic activity and population growth. Additionally, seasonal consumption trends also played a role in the overall growth observed in the petroleum sector.

The consistent flow and increasing quantity of Nepal petroleum imports via key entry points like Kakarbhitta underscore Nepal’s continued reliance on external sources for its energy needs, and the crucial role customs revenue plays in the government’s fiscal health.

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