NOC hikes petrol price by Rs 15 to Rs 172 per litre

KATHMANDU: Nepal Oil Corporation (NOC) has raised retail prices for petroleum products, citing rising international fuel costs driven by conflicts in the Middle East. The new rates have taken effect today.

Overall, the NOC has increased petrol by Rs 15 per litre and diesel and kerosene by Rs 10 per litre.

Under the revised structure, the first class areas — Charali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj — have petrol retailing at Rs 169.50 per litre and diesel and kerosene at Rs 149.50 per litre.

In the second class, covering Surkhet and Dang, petrol is set at Rs 171 per litre and diesel and kerosene at Rs 151 per litre.

The third class, which includes Kathmandu, Pokhara and Dipayal, has petrol priced at Rs 172 per litre and diesel and kerosene at Rs 152 per litre.

NOC, the state‑owned trading enterprise responsible for the import, storage and distribution of petroleum products, said the adjustment is a moderated response to international market movements, noting that global rates would have warranted a rise of Rs 31 per litre for petrol and Rs 54 per litre for diesel.

“Considering the ease of transportation and the smooth operation of public vehicles for the easy supply of consumer goods, a strategy has been adopted to adopt maximum flexibility and apply a lower price increase,” the NOC said in its statement on Sunday.

The corporation warned it remains under significant financial strain. Despite the moderated hike, the NOC projects a fortnightly loss of about Rs 3.93 billion. The statement recalled the financial difficulties during the 2079 BS Russia‑Ukraine war, when the NOC accumulated an outstanding debt of Rs 24 billion to Indian Oil Corporation. To service those dues, the NOC previously obtained a Rs 7 billion loan from the Ministry of Finance and a Rs 3 billion loan secured against its fixed assets at Rastriya Banijya Bank.

The NOC said it will monitor international market developments and pledged to reduce domestic prices as soon as global rates ease.