Fuel crunch, congestion push Nepal to halt public vehicle registrations

The Nepal government has decided to halt new registrations of all types of public transport vehicles amid growing concerns over traffic congestion, pollution and rising pressure on road infrastructure. The move has also triggered speculation that authorities are preparing for a possible fuel supply crisis and increasing petroleum dependency in the country.

According to officials, the decision was taken by Nepal’s Transport Department under the administration led by Balen Shah. The department cited worsening traffic jams, environmental pollution and mounting stress on urban transport systems as the primary reasons behind the restriction.

However, experts believe the decision may also be linked to concerns over global crude oil volatility and fears of future fuel shortages, especially as Nepal remains heavily dependent on imported petroleum products.

In a circular issued by the Transport Department, authorities directed all seven provinces and local bodies to stop new registrations of public transport vehicles. Notably, the restriction applies not only to petrol and diesel-powered vehicles but also to electric public transport vehicles, sparking debate over the government’s long-term transport and energy management strategy.

The circular, issued by Transport Department Director Mani Ram Bhusal, stated that the absence of “scientific management” of public transportation, excessive air pollution, traffic congestion, increasing vehicle pressure and rising fuel prices were making the operation of public transport increasingly difficult.

Officials said the order has been implemented under Section 24(3) of Nepal’s Vehicle and Transport Management law, which allows the government to suspend vehicle registrations in situations involving environmental concerns, excessive pressure on roads or difficulties in traffic movement.

Transport and energy experts noted that fluctuations in international crude oil prices and uncertainties surrounding global fuel supplies have directly affected import-dependent countries like Nepal. They believe limiting the growth of public transport fleets may be part of a broader strategy to control fuel consumption and manage existing transport resources more efficiently.

The decision has sparked discussions among transport operators and environmental experts, particularly because electric public vehicles have also been included in the restriction.

While the government maintains that the measure is aimed at improving urban transport management and reducing pollution, observers say it also reflects deeper concerns over energy security and infrastructure sustainability in the Himalayan nation.

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