West Asia Tensions Drive Fuel Price Surge, NOC Faces Mounting Losses

Rising global oil prices triggered by tensions in West Asia have put increasing pressure on Nepali consumers and the state-owned Nepal Oil Corporation (NOC), which is currently facing significant financial losses.

Although fuel prices have already increased in the domestic market, officials say the full impact of international price hikes has yet to be reflected. NOC continues to absorb mounting losses, with the corporation incurring an average daily loss of around Rs 880 million.

The surge in petroleum prices comes throughout disruptions in global supply chains. Ongoing instability in West Asia, including concerns surrounding the Strait of Hormuz and attacks on oil facilities in the Gulf region, has driven crude oil prices upward . In Nepal, the burden has been further intensified by high government taxes on fuel.

According to NOC Spokesperson Manoj Thakur, the corporation is projected to incure a loss of Rs 13.21 billion over a 15 day period based on the latest rates provided by the Indian Oil Corporation (IOC). NOC had already recorded losses of around Rs 5 billion between March 16 and March 31, highlighting the growing financial strain on the corporation amid volatile global oil markets.