In fourth consecutive hike, petrol hits NRs 219 per litre in Kathmandu

The Nepal Oil Corporation (NOC) has increased the retail prices of petroleum products once again, citing rising international fuel prices and supply pressures triggered by geopolitical tensions in West Asia.

According to the state-owned supplier, the new prices came into effect from 12:00 AM on Friday, with petrol rising by NRs 17 per litre and diesel and kerosene each by NRs 25 per litre.

Following the revision, petrol now costs NRs 216.5 per litre in first-category depots, NRs 218 in second-category depots, and NRs 219 in third-category depots, which include Kathmandu. Diesel and kerosene prices have been set at NRs 204.5, NRs 206, and NRs 207 per litre for the first, second, and third categories, respectively. 

Cooking gas prices have also been increased, with LPG now costing NRs 2,010 per cylinder, up by NRs 100. Similarly, domestic aviation fuel has risen by NRs 6 per litre to NRs 257 per litre.

The corporation said the revision was necessary after continued fluctuations in international petroleum prices. It also pointed to ongoing geopolitical tensions, including the impact of conflicts in West Asia, as a contributing factor.

Prior to the latest hike, the government provided partial relief by cutting customs duty and infrastructure development tax by 50%. However, the NOC said the measures were insufficient to offset rising import costs.

According to the corporation, it is still expected to incur a fortnightly loss of around NRs 7.81 billion, even after the price adjustment. The NOC said that failure to revise prices could affect its ability to clear payments to its Indian supplier, risking disruptions in the fuel supply chain.