Nepal’s Fuel and Fertilizer Imports Jump as Petroleum and Chemical Fertilizer Rise by 68%

Nepal’s import bill has seen a sharp increase in the first two months of FY 2025/26, driven largely by surging imports of petroleum products and chemical fertilizers, according to the latest Nepal Rastra Bank (NRB) data. Total imports reached Rs. 305.15 billion, marking a 16.2% year-on-year rise, with fuel and fertilizer emerging as two of the most significant contributors to this growth.

The data shows that petroleum products continue to dominate Nepal’s import structure, totaling Rs. 39.57 billion and accounting for 13% of the total import share. This marks a 2.2% rise compared to the same period of FY 2024/25. The increase is attributed to higher global fuel prices, seasonal consumption demand, and continued reliance on fuel-based energy and transport systems.

At the same time, chemical fertilizer imports surged dramatically by 68.1%, reaching Rs. 16.17 billion within just two months. This spike reflects active government procurement to ensure sufficient fertilizer supply ahead of the main agricultural season and an uptick in demand from farmers preparing for winter crops. The rise also indicates a rebound in Nepal’s agricultural sector, which had previously struggled due to delayed fertilizer supply and global shortages.

Other import categories showing significant increases include transport equipment and vehicles (+31.7%), telecommunication equipment (+29.1%), and aircraft spare parts (+357.7%), all signaling a broader rebound in domestic investment and infrastructure development.

Despite this import surge, the rising fuel and fertilizer bills are likely to widen Nepal’s trade deficit, even though remittance inflows and foreign exchange reserves remain strong. Economists warn that continued dependence on imported energy and fertilizers poses a long-term risk to Nepal’s external stability, urging policymakers to accelerate the shift toward renewable energy and domestic fertilizer production to reduce import dependency.