Kathmandu, June 21
The recent increase in fossil fuel import has made the authorities think about it’s possible alternative as Nepal’s gasoline consumption is skyrocketing. Nepal’s import of petroleum products was worth Rs215.76 billion in the fiscal year 2018-19, although this figure dropped to Rs163.70 billion in 2019-20 due to Covid-19-related restrictions that kept vehicles off the roads and brought factories and development projects to a halt for nearly four months from March to July last year.
According to a report of the Central Bureau of Statistics released in 2019, Nepal’s gasoline consumption doubled in the last five years, leading to a yawning trade deficit besides having consequences to the environment.
Nepal has consumed 90 percent more fuel than they did five years ago and petroleum products are one of the largest single imported commodity in terms of value every year.
To cut down this import and dependency on the petroleum products, the government is looking for an alternative in the form of EV(electric vehicle). “For the manufacture and assembly of electric vehicles, companies of the world’s top ten brands will be attracted to set up their plants,” said Finance Minister Bishnu Prasad Paudel.
“Tax subsidies would be offered and land on lease would be provided to make Nepal attractive for such companies”, he said while presenting the annual budget on May 29.
However attracting the companies form EV manufacture in Nepal would be a major challenge with neighboring nations manufacturing the vehicles at a cheaper rate.