Nepal’s transport entrepreneurs have proposed an accident relief fund to be financed through small additional charges on fuel and EV charging. The plan has already been submitted to the government as part of the draft vehicle law under review.
What the proposal says
The Nepal National Federation of Transport Entrepreneurs has suggested adding Rs 1 per litre on petrol and diesel used by private and public vehicles, and Rs 1 per unit on electricity used for EV charging. The federation says the fund would cover immediate rescue, treatment, and compensation after road accidents.
It has also proposed that 1% of third-party insurance premium collections be deposited into the same fund. Annual contributions from the federal, provincial, and local governments are also in the proposal.
Why the fund is being proposed
According to the federation, insurance payouts are sometimes not enough to meet emergency rescue and medical bills, especially for seriously injured victims. It says the fund could be used when an injured person has no clear legal beneficiary, or when a vehicle owner is unable to pay compensation.
The proposal has come at a time when the government is separately working on road safety reforms. Draft policy documents already discuss a dedicated road safety fund to support treatment, rehabilitation, and compensation for accident victims.[1][11]
What it means for vehicle buyers
If adopted, the measure would add a small extra cost for both ICE vehicles and EV users at the point of fuel purchase or charging. For buyers, this would not be a vehicle price change. It would be a usage-based charge linked to road use.
The suggestion is still under discussion. There is no official decision yet on whether the charge will be included in the final law.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
