New Delhi: The ongoing conflict in the Middle East and the resulting spike in global crude oil prices have begun to impact Nepal’s economy, with the Nepal Oil Corporation (NOC) incurring heavy losses.
Despite rising international prices, NOC has kept petrol and diesel rates unchanged to provide relief to the public. However, this decision has resulted in a loss of around 5 billion Nepali rupees in just 15 days.
Officials said the corporation is absorbing the losses to maintain stable retail prices of petrol, diesel, kerosene and cooking gas. If the trend continues, the total loss could reach 13.21 billion rupees in the next 15 days.
To offset the impact, NOC has sharply increased domestic aviation turbine fuel (ATF) prices. The rate has nearly doubled, rising from 127 rupees per litre to 251 rupees per litre — an increase of about 98%.
International ATF prices have also been revised, with rates for Kathmandu increasing from $966 to $1,785 per kilolitre. Prices for Pokhara and Bhairahawa have been kept at break-even levels.
The corporation said the price hike follows a revised rate list from Indian Oil Corporation, reflecting continuous increases in global fuel costs.
NOC has warned that if losses continue to mount, maintaining uninterrupted fuel supply in the future could become a challenge.
