Petroleum prices increased for fifth time in 31 days

Nepal is once again facing the burden of rising fuel costs, as the Nepal Oil Corporation (NOC) implements its fifth price adjustment in just 31 days. This latest revision sees increases in the prices of diesel, kerosene, and aviation fuel, adding to the financial strain on households and businesses across the country. The corporation's data reveals a stark reality: even with these hikes, significant losses persist, particularly on diesel sales, which continue to mount despite adjustments to customs duty and infrastructure development tax.

The primary driver behind these escalating fuel prices is the volatile geopolitical situation in West Asia, which has sent global oil prices soaring. This external pressure forces Nepal, like many other nations, to adjust its domestic fuel rates to mitigate the impact on its state-owned oil company. The cumulative effect of these frequent price increases is substantial; diesel and kerosene prices have seen a significant jump of around 56 percent in just over a month, reaching Rs 234.50 per litre in some regions.

This situation highlights Nepal's vulnerability to international market fluctuations and geopolitical instability. The NOC's struggle to remain profitable underscores the challenges of managing fuel supply and pricing in a developing economy heavily reliant on imports. The article notes that the previous high for aviation turbine fuel was Rs 190 per litre in September 2022, and the current price of Rs 256 per litre represents a considerable increase. The corporation's ongoing losses, even after price adjustments, signal a difficult period ahead for consumers and the national economy.