Nepal's Development Projects and Industries Face Crisis Due to Global Oil Price Volatility and West Asian Conflict
Summary
Nepal's development projects and industries face serious challenges due to West Asian conflict and rising global oil prices, leading to increased costs and supply shortages across petroleum products, bitumen, and plastic raw materials.
Key Points
- Nepal spent approximately 300 billion rupees on major petroleum imports in the first 10 months of fiscal year 2082/83, marking a 13.09% increase in import value despite a substantial volume decrease.
- The conflict in West Asia and petroleum price volatility have drastically affected bitumen imports, causing delays and halts in road blacktopping and infrastructure projects nationwide.
- The plastic industry in Nepal faces a severe crisis with raw material prices rising by nearly 50% and supply shortages due to international market instability and transportation disruptions.
- Imports of various petroleum products like diesel, petrol, aviation fuel increased in value, while LPG and kerosene imports decreased; these fluctuations have lifted production costs across related industries.
