Government Implements Odd-Even System to Address Fuel Crisis

In response to the conflict in West Asia and its impact on dollar reserves, the government has decided to implement an odd-even system to control fuel consumption and grant public holidays. The Council of Ministers has approved a 50 percent reduction in customs duty and infrastructure development tax on petroleum products. The Nepal Transport Entrepreneurs Federation has recommended that the odd-even system be initially applied to private vehicles without affecting public transportation. Kathmandu, 24 Chaitra.

Amid escalating conflict in West Asia, increased import pressure, and a decline in dollar reserves, the government has begun adopting various strategies to manage fuel consumption. After the escalation of conflict in West Asia led to rising petroleum prices, the Nepal Oil Corporation, the monopoly distributor of fuel, proposed suitable alternatives to the government. Facing growing financial deficits, the corporation has formally appealed to the public to reduce fuel consumption by practicing conservation.

When losses became unsustainable, the corporation suggested several measures to the government to reduce petroleum consumption. These included implementing an odd-even system for vehicles, granting two public holidays during office hours, closing schools and colleges, and imposing a quota system (rationing). Alongside efforts to curb consumption, the corporation also urged the government to offer tax reliefs for better economic management.

Minister Rawal, who announced the decision following the Council of Ministers meeting, stated that the government has proposed multiple options to manage the fuel crisis. She said, ‘We have already taken some steps to control the consumption of petroleum products,’ adding, ‘If the situation remains unmanageable despite these measures, the government will implement the odd-even system for transportation as well.’