Nepal Oil Corporation increases fuel prices: Petrol, Diesel, LPG rates rise amid mounting Losses

Kathmandu- Nepal Oil Corporation (NOC) has raised the prices of petroleum products in Nepal, citing growing financial losses due to rising international fuel costs.

Under the new pricing structure, petrol prices have increased by NPR 17 per liter, while diesel and kerosene have risen by NPR 25 per liter. Following the hike, petrol now costs between NPR 216.50 and NPR 219 per liter depending on the region. Diesel and kerosene prices range from NPR 204.50 to NPR 207 per liter.

LPG and Aviation Fuel Prices Also Increased

NOC has also raised the price of Liquefied Petroleum Gas (LPG) by NPR 100 per cylinder. The cost of a 14.2 kg LPG cylinder now stands at NPR 2,010. Additionally, domestic aviation fuel prices have been increased by NPR 6 per liter.

Nepal Oil Corporation Still Facing Heavy Losses

Despite the fuel price hike, Nepal Oil Corporation continues to report significant losses. According to the corporation, it is incurring a biweekly loss of approximately NPR 10.21 billion even after adjustments in customs duties and infrastructure development taxes.

Currently, NOC is losing NPR 16.65 per liter on petrol, NPR 109.50 per liter on diesel, and NPR 416.37 per LPG cylinder.

Risk to Fuel Supply and Payments

NOC warned that continued losses could impact its ability to make payments to Indian Oil Corporation, Nepal’s primary fuel supplier. This could potentially disrupt fuel supply across the country.

The corporation stated that the latest price adjustment does not fully reflect the actual cost price but was necessary to reduce financial pressure and maintain supply stability.

Consumers Urged to Use Fuel Efficiently

Even after the price revision, NOC estimates a remaining biweekly loss of around NPR 7.81 billion. The corporation has urged consumers to use petroleum products wisely and adopt fuel-efficient practices to help ease demand and manage supply.