KATHMANDU: Amid growing public concern over fuel prices in the domestic market, the Nepal Oil Corporation (NOC) has clarified that retail petroleum prices in Nepal are determined on the basis of international market rates.
The Corporation said that processed fuels are always more expensive than crude oil, as Nepal does not have its own refinery and therefore imports refined petroleum products directly instead of crude oil.
NOC spokesperson Manoj Thakur said fuel prices in Nepal should not be compared with crude oil, but with processed fuel prices in the international market. He added that NOC procures petroleum products from the Indian Oil Corporation (IOC), and prices are automatically adjusted every 15 days based on IOC rates.
According to data cited by NOC, on April 16, 2026, crude oil was priced at USD 99.6 per barrel, while petrol stood at USD 139.3 per barrel and diesel at USD 228.1 per barrel.
Normally, the difference between crude oil and petrol is around USD 10 per barrel, and around USD 20 for diesel. However, NOC said the gap has recently widened to about USD 144 for petrol and USD 216 for diesel due to international market disruptions, including tensions in the Gulf region.
It added that taxes, customs duty, transport, insurance, storage, and service charges also contribute to the final retail price of fuel in Nepal.
On April 16, NOC increased diesel and kerosene prices by Rs 30 per litre and aviation turbine fuel by Rs 5 per litre.
Following the adjustment, petrol and diesel prices in the first cluster stand at Rs 234.50 per litre, Rs 236 in the second cluster, and Rs 237 in the third cluster. Despite the price revision, NOC said it is still incurring a loss of Rs 99.96 per litre on diesel.
The corporation has also estimated that, due to continuous increases in international prices, it may face a loss of around Rs 5.75 billion over the next 15 days.
Comment