In a shocking update, Nepal recorded doubled gasoline consumption over the last five years.<\/p>\n
According to the Central Bureau of Statistics report, Nepalis consumed 90 percent more fuel than they did prior to the review period. The increased usage has led to a burgeoning trade deficit and resulted in environmental consequences.<\/p>\n
Furthermore, Nepal Oil Corporation data shows that the country\u2019s annual petrol consumption increased to 92 percent, while diesel consumption rose to 96 percent in the given period.<\/p>\n
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\u201cOur economic growth model is heavily dependent on the import of fossil fuels as we are yet to fully adopt green energy consumption in our development policies. We are at a crossroads, we must focus on implementing a proactive energy policy particularly in the\u00a0 public, private and government transportation mediums and other sectors,\u201d said Swarnim Wagle<\/span>, Former Vice-Chairman, National Planning Commission (NPC).<\/p><\/blockquote>\n
Moreover, there is a striking difference in taxes on fuel-based automobiles and electric vehicles. Electric vehicle buyers have to pay a tax of 10 percent of the purchase price while gasoline-based car users spend more than 250 percent on import duty.<\/p>\n
As per Nepal Rastra Bank (NRB) statistics, vehicles and spare part imports increased by 36.66 percent from NOR 77.84 billion in FY 2016-17 to NPR 105.9 billion in FY 2017-18.<\/p>\n
The country imported vehicles and spare parts worth NPR 71.30 billion, accounting for nearly 12 percent of total imports.<\/p>\n
Gasoline Imports Continue to Rise<\/h3>\n
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According to experts, the alarming rise in the consumption of gasoline and automobiles projects Nepal\u2019s expanding middle class, rise in living standards and growth in economic activities fueled by remittance-driven markets.<\/p>\n
Remittance inflow increased to NPR 755.06 billion, registering a growth of 8.6 percent Y-o-Y. This categorizes Nepal in the list of countries highly dependent on remittance contribution to GDP to keep the economy running.<\/p>\n
The central bank data states that Nepal imported petroleum products worth NPR 137 billion in the first eight months of the current fiscal, recording an increase by 36.4 percent Y-o-Y.<\/p>\n
\u201cIncreasing use of petrol suggests a rise in living standards with more middle-class people buying new vehicles while increased diesel consumption suggests a growth in the industrial and manufacturing sectors,\u201d said Economist Niraj Poudyal<\/span>.<\/p><\/blockquote>\n
\u201cIt simply widens the trade deficit. \u201cIf we compare revenue collection from automobile imports and taxes and the level of capital spending, the rise in consumption does not reflect economic growth.\u201d said Economist Raghubir Bista<\/span>.<\/p><\/blockquote>\n