Fuel Prices Rise Again in Nepal

Nepal Oil Corporation has announced an increase in the prices of several petroleum products, including diesel, kerosene, and aviation fuel. The new rates have come into effect from today, adding further pressure on consumers and businesses.

According to the revised pricing, the cost of both diesel and kerosene has gone up by Rs 30 per liter. With this adjustment, the price of these fuels has reached Rs 237 per liter. Similarly, the price of domestic aviation fuel has increased by Rs 5 per liter, bringing the new rate to Rs 256 per liter.

Rising Costs Behind Price Hike

The corporation stated that the price increase is mainly due to rising fuel costs in the international market. It also mentioned that the latest pricing structure provided by the Indian Oil Corporation has significantly impacted domestic fuel rates.

Despite the recent adjustment, Nepal Oil Corporation continues to face heavy financial losses. According to its report, the corporation is still losing Rs 2.32 per liter on petrol, Rs 87.99 per liter on diesel, and Rs 36.70 per liter on kerosene. In addition, it is incurring a loss of Rs 331.25 on each LPG cylinder.

Growing Financial Pressure

The ongoing losses have placed a significant burden on the corporation. It has reported a fortnightly loss of around Rs 7.81 billion, highlighting the seriousness of the financial situation.

Officials have indicated that such price revisions are necessary to reduce losses and maintain fuel supply across the country. However, even with the current increase, the corporation has not been able to fully balance its costs.

Impact on Consumers

The latest price hike is expected to affect transportation costs, daily expenses, and overall inflation in Nepal. With fuel being a key component of the economy, any increase in prices directly impacts both consumers and businesses.

The rise in fuel prices reflects ongoing global market pressures and the financial challenges faced by Nepal Oil Corporation. As international prices continue to fluctuate, further adjustments may be expected in the future.