Over Rs. 45 Billion Spent on Petroleum Imports Alone, Alternative Energy a Must

Kathmandu – In just the first two months of the current fiscal year 2082/83, Nepal spent more than Rs. 45.39 billion on the import of petroleum products. According to the Department of Customs, petroleum remains the single largest import item, occupying a significant share of the country’s overall import bill.

With Nepal’s total imports crossing Rs. 305 billion in the review period, petroleum alone accounted for nearly 15 percent of the total. Experts warn that such a massive expenditure on fuel is putting direct pressure on the country’s foreign exchange reserves and balance of payments.

For a developing country like Nepal, dependence on imported petroleum is considered a long-term structural challenge. Volatility in global oil prices continues to destabilize the economy, making it urgent for Nepal to accelerate investment in alternative energy sources.

Energy experts point out that Nepal has vast potential in hydropower generation, but its utilization remains limited. Similarly, renewable sources such as solar, biogas, and wind energy have not been fully tapped. Linking these resources with sustainable development, they argue, could reduce petroleum dependence in the coming years.

Policy analysts emphasize that unless the government adopts immediate strategies to expand alternative energy and curb petroleum consumption, the trade deficit will widen further, and the pressure on foreign currency reserves will deepen.