NOC hikes fuel prices

KATHMANDU: Nepal Oil Corporation has increased the prices of petrol, diesel, and kerosene, effective from Monday.

According to an official statement issued by the corporation, the price of petrol has been raised by Rs 1 per liter, while diesel and kerosene prices have been increased by Rs 3 per liter each.

However, the prices of cooking gas (LPG) and aviation fuel remain unchanged.

The price revision follows the new rate list sent by Indian Oil Corporation (IOC).

As per the corporation, IOC increased the price of petrol by Rs 1.51 per liter and diesel by Rs 5.02 per liter in its latest price notification to Nepal.

New Fuel Prices by Region

Nepal Oil Corporation has categorized fuel prices into three zones across the country:

Category 1 (Charali, Biratnagar, Birgunj, Janakpur, Amlekhgunj, Bhairahawa, Nepalgunj, Dhangadhi):

• Petrol: Rs 154.50 per liter

• Diesel/Kerosene: Rs 139.50 per liter

Category 2 (Surkhet and Dang):

• Petrol: Rs 156 per liter

• Diesel/Kerosene: Rs 141 per liter

Category 3 (Kathmandu, Pokhara, and Dipayal):

• Petrol: Rs 157 per liter

• Diesel/Kerosene: Rs 142 per liter

How Fuel Prices Are Determined

Nepal Oil Corporation does not import crude oil directly from the international market. Instead, it purchases all refined petroleum products from Indian Oil Corporation.

IOC sends a revised price list to NOC every 15 days.

The prices set by IOC are based primarily on the cost of crude oil in the international market, including refining charges and operational expenses.

After importing petroleum products, Nepal Oil Corporation adds customs duties and taxes payable to the government, administrative costs, transportation expenses, and dealer commissions to determine the final consumer prices.

The corporation stated that fluctuations in international crude oil prices remain the most significant factor influencing fuel prices in Nepal.