The government has announced a major fuel allowance cut for public officials as rising fuel prices and weak revenue collection continue to put pressure on Nepal’s economy.
The Ministry of Finance confirmed that Finance Minister Dr. Swarnim Wagle approved the decision, citing growing financial strain on the state. A sharp increase in global petroleum prices, supply challenges, and lower-than-expected revenue collection this fiscal year have pushed the government to tighten public spending.
Officials said the move is part of a broader effort to enforce financial discipline and reduce non-essential expenses. The policy was implemented by revising provisions under existing operational guidelines, allowing adjustments to fuel benefits across various levels of government administration.
Reduced Fuel Quotas Across Government Offices
Under the new policy, senior officials, including secretaries, will now receive 70 liters of fuel per month, reduced from 125 liters. Joint secretaries will see their allocation cut from 100 liters to 50 liters. However, ministers and constitutional office holders will continue to receive fuel benefits under existing legal provisions.
The fuel allowance cut also affects pooled vehicles used by central government offices. Offices with up to 30 employees will now receive 35 liters of petrol and 50 liters of diesel, down from the previous 75 liters and 100 liters. The same limits apply to offices with up to 50 employees, with incremental allocations at the revised rate for larger staff sizes.
Two-wheelers used for official duties will also face reductions, with monthly petrol allowances lowered from 12 liters to 8 liters. This reflects a wider push to reduce fuel consumption across all government operations.
Officials say the measure is aimed at ensuring responsible public spending during a period of economic uncertainty. The government will continue to monitor the impact of the fuel allowance cut and may introduce further adjustments depending on economic conditions.
