Oil Imports Cost Nepal USD 124M in Just One Month

Nepal spent a staggering USD 124 million on petroleum imports in just the first month of fiscal year 2025/26, according to the latest Balance of Payments report by Nepal Rastra Bank. Despite lower global oil prices compared to last year, petroleum products remain Nepal’s single largest import item, accounting for a significant portion of the country’s trade deficit.

The data shows oil and petrol imports worth USD 130.8 million under the general merchandise category, compared to *USD 110.6 million in 2024/25 and USD 139.3 million in 2023/24. Although this marks a slight year-on-year decrease, the overall import burden remains heavy amid rising domestic consumption and limited alternative energy adoption.

Economists warn that the continued dependency on fossil fuels poses both fiscal and environmental risks. With the country’s trade deficit at USD −883 million, oil imports alone represent nearly 15% of total import expenses during the review month.

Experts emphasize the urgent need for renewable energy investment, particularly in hydropower-based transportation and electric vehicle infrastructure, to reduce the nation’s oil bill and foreign exchange pressure.