Nepal’s petroleum import bill rose sharply in the first two months of FY2026/27, reaching Rs. 65.49 billion, up 73% from Rs. 37.86 billion recorded during the same period last fiscal year.

Data from the Department of Customs shows petroleum products accounted for 16.31% of Nepal’s total imports during the review period. The country’s overall imports stood at Rs. 401.51 billion.

Of the petroleum import bill, Nepal spent Rs. 28.03 billion on diesel, Rs. 16.13 billion on petrol, Rs. 16.02 billion on cooking gas, and Rs. 5.22 billion on aviation fuel.

The increase in the import bill was attributed by traders to higher international oil prices, a stronger US dollar and an increase in the quantity of petroleum products purchased.

In the first two months of FY2025/26, Nepal had imported petroleum products worth Rs. 37.86 billion, including Rs. 14.91 billion of diesel, Rs. 10.58 billion of petrol, Rs. 9.43 billion of cooking gas and Rs. 2.85 billion of aviation fuel.

Meanwhile, Nepal imported 425,000 mobile phones worth Rs. 9.74 billion during the review period, compared with Rs. 8.87 billion in the same period last year.

Other major import categories included crude edible oil and ghee worth Rs. 48.57 billion, vehicles and parts worth Rs. 29.28 billion, fertilizers worth Rs. 24.91 billion, machinery and parts worth Rs. 24.91 billion, and iron and steel worth Rs. 23.46 billion. Crude soybean oil alone accounted for Rs. 38.05 billion.

India remained Nepal’s largest import source, with imports of Rs. 221 billion, while exports to India stood at Rs. 65.44 billion. China was the second-largest source, with imports of Rs. 76.40 billion, while exports to China were Rs. 293.3 million.

Overall imports increased 31.58% during the period, while exports rose 61.68% to Rs. 76.58 billion. As a result, Nepal’s trade deficit increased 26.02% to Rs. 324.93 billion.