Fuel prices go up fifth time in just over a month

Nepal Oil Corporation (NOC) has once again raised fuel prices, marking the fifth increase within a span of just 31 days, as global oil prices continue to climb.

The latest revision, effective Thursday, pushes up the prices of diesel, kerosene, and aviation turbine fuel (ATF), while petrol and liquefied petroleum (LP) gas remain unchanged. Petrol is still priced at NRs 219 per litre, and a 14.2 kg LP gas cylinder costs NRs 2,010.

Diesel and kerosene have both been increased by NRs 30 per litre, while ATF has gone up by NRs 5 per litre. Following the adjustment, diesel and kerosene now cost NRs 234.50 per litre in first-category regions, NRs 236 in second-category areas, and NRs 237 in third-category locations. Domestic aviation fuel has been fixed at NRs 262 per litre.

The corporation categorises Charali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi, and Birgunj under the first tier. Surkhet and Dang fall under the second tier, while Kathmandu, Pokhara, and Dipayal are listed in the third.

Despite the adjustment, the corporation said it is still facing a loss of NRs 99.16 per litre on diesel even after the revision. The state-owned company also disclosed a total loss of approximately NRs 5.75 billion over the past 15 days, even after revising customs duties and infrastructure development taxes.

Officials attribute the continued adjustments to rising crude oil prices in the international market, fueled by escalating tensions in West Asia. Since mid-March, the corporation has revised fuel prices five times.

The first on March 15, when petrol prices rose by NRs 15 per litre and diesel and kerosene by NRs 20. At that time, petrol was priced at NRs 172 per litre, while diesel and kerosene stood at NRs 152. Since then, diesel and kerosene prices have surged by roughly 56%.

The impact of the West Asian conflict has been felt globally, with governments, including Nepal, forced to adjust domestic fuel prices in response to rising international oil rates.

Aviation fuel prices have also seen multiple revisions this month. ATF was set at NRs 251 per litre on April 1, increased to NRs 257 on April 10, and now stands at NRs 262. 

In addition, NOC had earlier raised the price of aviation fuel for international flights by 77.63%, setting the rate at $1,716 per kilolitre in Kathmandu, with similar adjustments implemented in Pokhara and Bhairahawa.