Nepal: Market for Processed Petroleum Oils and Distillates 2024

Market Size for Processed Petroleum Oils and Distillates in Nepal

The Nepalese market for processed petroleum oils and distillates dropped dramatically to $X in 2022, reducing by -21.9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, recorded a perceptible increase. As a result, consumption reached the peak level of $X, and then declined sharply in the following year.

Exports of Processed Petroleum Oils and Distillates

Exports from Nepal

In 2022, after three years of growth, there was significant decline in shipments abroad of processed petroleum oils and distillates, when their volume decreased by -50% to X tons. Overall, exports, however, saw significant growth. The most prominent rate of growth was recorded in 2021 when exports increased by 161,722%. As a result, the exports reached the peak of X tons, and then fell significantly in the following year.

In value terms, processed petroleum oils and distillates exports declined remarkably to $X in 2022. In general, exports, however, enjoyed a significant expansion. The growth pace was the most rapid in 2021 with an increase of 553,396%. As a result, the exports reached the peak of $X, and then dropped notably in the following year.

Exports by Country

Iceland (X tons) was the main destination for processed petroleum oils and distillates exports from Nepal, with a 95% share of total exports. Moreover, processed petroleum oils and distillates exports to Iceland exceeded the volume sent to the second major destination, India (X tons), more than tenfold.

From 2012 to 2022, the average annual rate of growth in terms of volume to Iceland amounted to +211.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: India (+70.6% per year) and South Korea (+125.9% per year).

In value terms, Iceland ($X) remains the key foreign market for processed petroleum oils and distillates exports from Nepal, comprising 97% of total exports. The second position in the ranking was taken by South Korea ($X), with a 1.7% share of total exports.

From 2012 to 2022, the average annual growth rate of value to Iceland stood at +208.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (+102.7% per year) and India (+72.0% per year).

Export Prices by Country

The average export price for processed petroleum oils and distillates stood at $X per ton in 2022, approximately equating the previous year. Overall, the export price, however, recorded resilient growth. The most prominent rate of growth was recorded in 2015 an increase of 14,565% against the previous year. The export price peaked at $X per ton in 2021, and then declined modestly in the following year.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Iceland ($X per ton), while the average price for exports to India ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to India (+0.8%), while the prices for the other major destinations experienced a decline.

Imports of Processed Petroleum Oils and Distillates

Imports into Nepal

In 2022, approx. X tons of processed petroleum oils and distillates were imported into Nepal; falling by -21.9% compared with 2021 figures. Over the period under review, imports, however, saw a modest expansion. The pace of growth was the most pronounced in 2021 when imports increased by 78% against the previous year. As a result, imports reached the peak of X tons, and then dropped rapidly in the following year.

In value terms, processed petroleum oils and distillates imports contracted rapidly to $X in 2022. Overall, imports, however, enjoyed notable growth. The most prominent rate of growth was recorded in 2021 with an increase of 78%. As a result, imports reached the peak of $X, and then fell notably in the following year.

Imports by Country

In 2022, India (X tons) was the main supplier of processed petroleum oils and distillates to Nepal, accounting for a 99% share of total imports. It was followed by the United Arab Emirates (X tons), with a 0.5% share of total imports.

From 2012 to 2022, the average annual rate of growth in terms of volume from India totaled +1.6%. The remaining supplying countries recorded the following average annual rates of imports growth: the United Arab Emirates (-1.8% per year) and Singapore (-9.2% per year).

In value terms, India ($X) constituted the largest supplier of processed petroleum oils and distillates to Nepal, comprising 99% of total imports. The second position in the ranking was held by the United Arab Emirates ($X), with a 0.5% share of total imports.

From 2012 to 2022, the average annual rate of growth in terms of value from India totaled +4.1%. The remaining supplying countries recorded the following average annual rates of imports growth: the United Arab Emirates (-2.0% per year) and Singapore (-9.2% per year).

Import Prices by Country

In 2022, the average import price for processed petroleum oils and distillates amounted to $X per ton, flattening at the previous year. In general, import price indicated moderate growth from 2012 to 2022: its price increased at an average annual rate of +2.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, processed petroleum oils and distillates import price decreased by +0.0% against 2020 indices. The pace of growth appeared the most rapid in 2014 when the average import price increased by 61%. As a result, import price attained the peak level of $X per ton. From 2015 to 2022, the average import prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was the United Arab Emirates ($X per ton), while the price for Singapore ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by India (+2.4%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform