An Econometric Analysis of Imported Petroleum Products of Nepal

Abstract

Background: Petroleum products are materials derived from crude oil as it is processed in oil refineries. It is a naturally occurring yellowish-black liquid found in geological formations beneath the earth’s surface that can be refined into fuel. The purpose of this study was to examine the trend analysis of petroleum product imports in Nepal.

Methods: The study has been based on secondary data provided by the website of Nepal Oil Corporation (NOC) from April 1987 to February 2018. An analytical time series study has been conducted to analyze the trend of imported petroleum products. For the analysis of data, M.S. excel and SPSS have been used.

Result: The result showed that dependence on petroleum product import is increasing every year which caused an increase in the price of petroleum products. As the result also showed that time is increased by one unit then the consumption of petrol is increased by 0.11 units.

Conclusion: The finding of the study concluded that the trend and regression analysis to estimate the demand for petroleum products is in increasing order. So alternative sources of petrol and other petroleum product should have to search to avert the fuel crisis.