Nepal Ministry of Finance Slashes Fuel Allowances for Government Officials

Kathmandu. The Ministry of Finance has decided to implement significant cuts to the fuel allowances provided to government employees and officials. Finance Minister Dr. Swarnim Wagle approved the decision on Monday to protect the economy from the ongoing fuel crisis.

The Ministry stated that this decision was made to maintain austerity in public spending due to the sharp rise in petroleum prices in the international market, supply shortages, and the failure to meet revenue collection targets in the current fiscal year.

Exercising the authority granted by Sections 20 and 24 of the Financial Procedures and Fiscal Responsibility Act, 2076, the Ministry of Finance has amended the fuel-related provisions in point no. 49 of the 'Operational Guidelines, 2081'.

According to the amendment, secretaries and special-class officials who previously received 125 liters of fuel will now receive 70 liters. Joint-secretary level officials who were receiving 100 liters will now receive 50 liters.

Ministers and constitutional officials will continue to receive fuel allowances as per prevailing laws. Additionally, fuel allowances previously available for pool vehicles in central-level offices have also been reduced.

Offices with up to 30 employees, which previously received 75 liters of petrol and 100 liters of diesel, will now receive 35 liters of petrol and 50 liters of diesel. For offices with an additional 50 employees, the allowance has been reduced from 75 liters of petrol and 100 liters of diesel to 35 liters of petrol and 50 liters of diesel. For every additional 100 employees thereafter, 35 liters of petrol and 50 liters of diesel will be provided.

Previously, 75 liters of petrol and 100 liters of diesel were provided for every additional 100 employees. Similarly, two-wheelers, which previously received 12 liters of petrol per month, will now receive only 8 liters per month.