Tuesday, May 19th, 2026

Finance Ministry slashes fuel allowances for govt officials



KATHMANDU: The Ministry of Finance has decided to significantly cut fuel facilities provided to government employees and officials in a bid to ease mounting economic pressure.

Finance Minister Dr. Swarnim Wagle approved the decision on Monday, citing the need to protect the economy from a growing fuel crisis.

According to the ministry, the move comes in response to a sharp rise in international petroleum prices, supply constraints, and failure to meet revenue collection targets in the current fiscal year. The decision aims to enforce fiscal discipline and reduce public expenditure.

The ministry revised fuel-related provisions under Clause 49 of the Operational Guidelines 2024, exercising authority granted by the Financial Procedures and Fiscal Responsibility Act 2019.

As per the revised provisions, secretaries and officials of special rank, who previously received 125 liters of fuel per month, will now be entitled to only 70 liters. Similarly, joint secretaries will see their monthly fuel allocation reduced from 100 liters to 50 liters.

However, ministers and constitutional office bearers will continue to receive fuel facilities as per existing laws.

Fuel allocations for pool vehicles at central-level offices have also been reduced. Offices with up to 30 staff members, which previously received 75 liters of petrol and 100 liters of diesel, will now get only 35 liters of petrol and 50 liters of diesel.

Likewise, offices with an additional 50 employees will receive the same reduced allocation of 35 liters of petrol and 50 liters of diesel, down from the previous 75 liters and 100 liters respectively.

For every additional 100 employees, the fuel allocation has also been cut to 35 liters of petrol and 50 liters of diesel, compared to the earlier provision of 75 liters and 100 liters.

In addition, fuel provided to two-wheelers has been reduced from 12 liters per month to 8 liters.

The ministry said the cuts are part of broader austerity measures to control government spending amid ongoing economic challenges.

Publish Date : 07 April 2026 08:05 AM

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