In, Nepal discovered doubled gasoline consumption during the last five years.
Based on the Central Bureau of Research report, Nepalis utilized 90 percent more fuel than they did before the review period. The improved usage has led to a burgeoning transaction deficit and led to environmental consequences.
Moreover, Nepal Oil Corporation data shows that the country’s yearly petrol consumption increased to 92 percent, whilst diesel consumption rose to 96 percent in the given period.
Furthermore, there is a striking difference in income taxes on fuel-based automobiles and also electric vehicles. Electric vehicle users need to pay a tax of 10 percent of the purchase price while gasoline-based car users invest more than 250 percent on import duty.
According to Nepal Rastra Bank ( NRB ) statistics, vehicles and spare part imports improved by 36.66 percent from NOR 77.84 billion in FY 2016-17 to NPR 105.9 billion in FY 2017-18.
The nation imported vehicles and spare parts price NPR 71.30 billion, accounting for close to 12 percent of overall imports.
Based on specialists, the alarming rise in the usage of gasoline and vehicles projects Nepal’s enlarging middle class, rise in living standards and growth in financial activities fueled by remittance-driven marketplaces.
Remittance inflow improved to NPR 755 .06 billion, registering a development of 8 .6 percent Y-o-Y. This categorizes Nepal in the number of countries highly influenced by remittance contribution to GDP to keep the economy running.
The central bank data states that Nepal brought in petroleum products priced NPR 137 billion in the first eight months of the current fiscal, recording a boost by 36 .4 percent Y-o-Y.
Apart from, the environmental impacts are also worrying. Based on the 2017 Air Quality Management Activity Plan for Kathmandu Valley, vehicle exhaust is a major contributor to rising air pollution.
According to the 2018 data, automobiles are responsible for 30 percent of the particulate issue ( PM10 ) in the air while the construction sector accounts for 53 percent.
According to the global Environmental Performance Catalog released in January 2018, Nepal was ranked the worst for air quality among 180 nations.
“Low ratings on the index are indicative of the requirement for national sustainability efforts on several fronts, especially cleaning up air quality, preserving biodiversity, and reducing greenhouse gas emissions. A few of the lowest ranking nations face broader challenges, such as civil unrest; but the low scores on others can be attributed to weak governance,” read the report.