Nepal Oil Corporation Keeps Fuel Prices Unchanged Despite Higher Import Costs
Nepal Oil Corporation (NOC) has decided to keep the retail prices of petroleum products unchanged despite a significant rise in the purchase prices received from the Indian Oil Corporation (IOC).
According to NOC, international petroleum prices have remained volatile due to the ongoing conflict in the Middle East, making it difficult to fully adjust domestic prices in line with the automatic pricing mechanism.
As per the latest purchase prices received from IOC on Ashwin 14, 2083, the price of petrol has increased by Rs. 20.44 per liter, diesel by Rs. 20.21, kerosene by Rs. 15.96, aviation fuel by Rs. 18.66 per liter, and LPG by Rs. 81.32 per cylinder.
However, considering the circumstances created by the Bhotekoshi floods and landslides, the upcoming festive season, and the interests of consumers, the NOC Board decided to maintain the existing retail prices effective from 12:01 a.m. on October 1, 2026.
For international aviation fuel, the selling price at Pokhara and Bhairahawa has been maintained at the break-even point.
Under the existing pricing structure, petrol will continue to cost Rs. 197.50 per liter in the first category, Rs. 199 in the second category, and Rs. 200 in the third category.
Similarly, diesel and kerosene will remain at Rs. 197.50, Rs. 199 and Rs. 200 per liter in the respective categories. Domestic aviation fuel will continue to cost Rs. 249 per liter, while international aviation fuel in Kathmandu is priced at $1,697 per kiloliter. LPG remains priced at Rs. 2,060 per 14.2-kg cylinder.
The first category includes Charaali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj, while Surkhet and Dang fall under the second category. Kathmandu, Pokhara and Dipayal are classified under the third category.
Despite maintaining the existing retail prices, NOC estimates that it will incur a fortnightly loss of around Rs. 3.20 billion under the current situation.
The decision is aimed at preventing an immediate increase in petroleum prices while taking into account the impact of recent disasters and the upcoming festive season on consumers.
