Kathmandu faces Fuel Rush after Sharp Price Cut

Kathmandu: A temporary shortage of petrol was reported at several private fuel stations across the Kathmandu Valley after the Nepal Oil Corporation reduced petroleum prices sharply from Wednesday morning.

Many private petrol pumps were seen closed or had stopped selling fuel, while some displayed notices saying petrol was unavailable. As a result, long queues of vehicles formed at government-operated fuel stations and a few private pumps that continued service. Vehicles were also seen lining up at Bhadrakali petrol pump to receive petrol and diesel.

The shortage appeared shortly after the NOC cut fuel prices following a fall in international petroleum rates. Petrol was reduced by Rs 20 per litre, while diesel and kerosene were reduced by Rs 30 per litre. The price of LPG was also reduced by Rs 100 per cylinder. After the adjustment, petrol is priced at Rs 197 per litre, diesel and kerosene at Rs 195 per litre, and LPG at Rs 2,060 per cylinder.

Despite the queues and closures, the NOC said there was no real shortage of petroleum products in the market. NOC Spokesperson Manoj Kumar Thakur said the problem was created after some dealers reportedly avoided loading fuel once they came to know prices would fall, leading to an artificial shortage. He added that the corporation had started monitoring and warned of action against pumps that refused to sell fuel despite available supply.

The NOC also urged consumers not to panic. According to the corporation, additional fuel was dispatched from the Thankot depot, and supply in the Kathmandu Valley was being managed as per demand.

Meanwhile, the Federation of Nepalese National Transport Entrepreneurs has called on the government to adjust public transport fares in line with the automatic pricing mechanism after the reduction in fuel prices. Federation President Punya Prasad Sitoula said public transport fares should be revised in a transparent and scientific manner whenever petroleum prices change.

The price cut came after lower supply prices from Indian Oil Corporation and easing global oil prices. Reuters reported that Nepal reduced fuel prices by up to 17 percent as global prices eased following reduced fears of Middle East supply disruption.