Kakarbhitta Petroleum Import Report Exceeds NPR 9.77 Billion
22nd January 2026, Kathmandu
Nepal has recorded a substantial volume of petroleum imports through its eastern border point at Kakarbhitta during the first six months of the current fiscal year 2082/83. According to official data from the Mechi Customs Office, petroleum products worth more than 9.77 billion rupees were imported through this strategic gateway by the end of Poush, reflecting a steady increase in fuel demand and regional economic activity.
Kakarbhitta Petroleum Import Report
The imported petroleum products include a wide variety of fuels essential for the transport, residential, and aviation sectors, namely petrol, diesel, liquefied petroleum gas (LPG), aviation turbine fuel (ATF), and kerosene. The total value of these imported products during the six month period reached 9 billion 77 crore 2 lakh and 32 thousand rupees. This figure underscores the strategic importance of the Kakarbhitta entry point in sustaining the energy needs of the eastern region of Nepal.
Growth in Import Volume and Economic Activity
According to Ishwarkumar Humagain, Information Officer and Customs Officer at the Mechi Customs Office, petroleum imports through Kakarbhitta increased by 51 crore 59 lakh and 43 thousand rupees compared to the same period of the previous fiscal year 2081/82. This represents a year on year growth of 5.60 percent, signaling a rise in consumption patterns and increased transport activity across the Mechi corridor.
The increase in petroleum imports has also had a direct positive impact on government revenue. Revenue generated from petroleum products during the review period increased by 5.70 percent, amounting to an additional 25 crore 42 lakh and 40 thousand rupees. This growth in revenue underscores how critical petroleum imports are to the customs and tax collections of Nepal.
Detailed Breakdown of Fuel Imports by Category
The official records from the Mechi Customs Office provide a granular look at the energy consumption profile of the region. During the first six months of the current fiscal year, petroleum imports generated a total revenue of 4.74 billion rupees for the state treasury.
Petrol Imports: Petrol accounted for the largest share of the imports. During the six month period, 53,152 kiloliters of petrol were imported through Kakarbhitta, valued at 4.72 billion rupees. The dominance of petrol imports is largely driven by the increasing number of private two wheelers and four wheelers on the roads.
Diesel Imports: Diesel remains a critical fuel for the commercial backbone of the country. The customs data indicates that 33,744 kiloliters of diesel were imported, with a total value of 3.22 billion rupees. Diesel is the primary energy source for heavy commercial transportation, construction machinery, agricultural tractors, and industrial power backup.
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Liquefied Petroleum Gas (LPG): LPG imports showed notable figures as it remains the primary cooking fuel for urban and semi urban households. A total of 12,811 metric tons of LPG were imported, valued at 1.24 billion rupees.
Aviation Turbine Fuel (ATF): ATF imports reached 4,112 kiloliters, valued at 37 crore 94 lakh rupees. These figures are closely tied to the recovery of the tourism sector and the frequency of domestic and international flights.
Kerosene: Kerosene imports stood at 964 kiloliters, valued at 9 crore 5 lakh rupees. While its usage has declined compared to previous decades, it remains an essential fuel for specific industrial and lighting needs in certain rural areas.
Strategic Importance and Fiscal Impact
The revenue of 4.74 billion rupees generated through these imports plays a crucial role in supporting government expenditure and fiscal management. Nepal relies heavily on indirect taxes collected at customs points, and petroleum products are among the highest tax yielding commodities.
However, the Kakarbhitta petroleum import report also highlights the continued dependence of Nepal on imported fossil fuels to meet its domestic energy requirements. While the increase in imports supports immediate economic activity, it also emphasizes the need for long term national strategies to manage fuel consumption. This includes improving energy efficiency and accelerating the transition to alternative energy sources like hydropower.
Conclusion: Future Outlook for Energy Imports
Overall, the import of nearly 10 billion rupees worth of petroleum products through a single border point in just six months demonstrates the massive scale of the fuel demand in Nepal. As the economy continues to expand and infrastructure projects in the eastern region gain momentum, fuel consumption is expected to remain on an upward trajectory.
The role of the Mechi Customs Office and the Kakarbhitta gateway will remain vital in facilitating this energy supply chain. For policymakers and economists, these import figures serve as a key indicator of trade balance and overall economic stability. Monitoring these trends is essential for managing foreign exchange reserves and planning for the energy security of the nation.
For More: Kakarbhitta Petroleum Import Report
