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Home Prime News

Government Cuts Fuel Allowances to Tackle Fiscal Pressure

CEO Tab by CEO Tab
April 7, 2026
in Prime News
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Finance_Ministry

Government to issue economic white paper today

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The Ministry of Finance has decided to reduce fuel facilities provided to government employees and officials as part of austerity measures aimed at easing growing fiscal pressure.

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Finance Minister Swarnim Wagle approved the decision, emphasizing the need to protect the economy from a worsening fuel crisis.

According to the ministry, the move comes amid rising international petroleum prices, supply constraints, and a shortfall in revenue collection during the current fiscal year. The government is seeking to curb public spending to maintain fiscal discipline.

Invoking provisions under the Financial Procedures and Fiscal Responsibility Act, 2076 BS, the ministry has amended fuel-related rules under Point No. 49 of the ‘Operational Guidelines, 2081’.

Under the revised provisions, secretaries and special class officials will now receive 70 litres of fuel per month, reduced from 125 litres. Similarly, joint secretaries will see their monthly allocation cut from 100 litres to 50 litres.

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

Fuel allocations for pool vehicles at central-level offices have also been scaled back. Offices with up to 30 employees will now receive 35 litres of petrol and 50 litres of diesel, down from 75 litres and 100 litres respectively.

Likewise, offices with an additional 50 employees will receive the same reduced quota. For every additional 100 employees, fuel allocation has been lowered to 35 litres of petrol and 50 litres of diesel, compared to the previous 75 litres of petrol and 100 litres of diesel.

The ministry has also reduced fuel entitlements for two-wheelers, cutting the monthly allowance from 12 litres to 8 litres.

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