LPG Imports Rise in Volume, Fall in Value

Petroleum products remained the largest import commodities in value terms by the third quarter of the current fiscal year, ending mid-April.

According to the latest foreign trade statistics released by the Department of Customs on Monday, April 20, diesel topped the list at Rs 103.31 billion, followed by petrol at Rs 50.39 billion and liquefied petroleum gas (LPG) at Rs 41.64 billion.

Compared to the same period last fiscal year, imports of both diesel and petrol increased in terms of quantity and value. LPG imports, however, showed a mixed trend — volumes rose from 410,593.62 tonnes to 411,081.42 tonnes, while the total import value declined from Rs 46.58 billion to Rs 41.64 billion.

Nepal’s trade deficit expanded by 13.04 percent year-on-year to Rs 1,267.56 billion in the period, as import growth continued to outpace exports.

Imports rose by 13.82 percent to Rs 1,490.49 billion in the period. Exports also posted a notable increase of 18.46 percent, reaching Rs 222.93 billion, but remained insufficient to offset the widening trade imbalance.

India continued to dominate Nepal’s trade landscape, accounting for the largest share of the deficit. The trade gap with India alone stood at Rs 663.11 billion, with imports totalling Rs 847.05 billion against exports of Rs 183.94 billion.

Trade with China remained heavily skewed. Imports surged to Rs 300.71 billion, while exports were limited to just Rs 1.19 billion, resulting in a deficit of Rs 299.51 billion. Argentina ranked third among countries with the highest trade deficit with Nepal, followed by the United Arab Emirates and Indonesia.

Nepal recorded a trade surplus with 35 countries, including Denmark, Romania, and Norway. Surpluses stood at Rs 588.61 million with Denmark, Rs 43.97 million with Romania, and Rs 42.51 million with Norway.

Other major imports included crude soybean oil worth Rs 96.72 billion, iron and steel products worth Rs 42.62 billion, smartphones worth Rs 33.82 billion, diammonium phosphate worth Rs 24.08 billion, and gold worth Rs 23.5 billion.

On the export side, refined soybean oil continued to dominate, with shipments valued at Rs 90.71 billion, up sharply from Rs 62.78 billion in the same period a year earlier. 

Other key exports included large cardamom worth Rs 10.7 billion, woollen carpets and textile floor coverings worth Rs 7.44 billion, sunflower-seed and safflower oil (excluding crude) and their fractions worth Rs 6.94 billion, and refined bleached deodorised palm olein worth Rs 5.09 billion.