Nepal Oil Corporation Holds Fuel Prices Steady Despite Rising Import Costs
Nepal Oil Corporation (NOC) has decided to keep retail petroleum prices unchanged, even as import prices from Indian Oil Corporation (IOC) have surged. The decision, effective from October 1, 2026, aims to shield consumers from immediate price hikes amid recent floods, landslides, and the upcoming festive season, though NOC expects a fortnightly loss of around Rs. 3.20 billion.
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 per liter in the second category
- Rs. 200 per liter 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.