Petrol prices hit record high

Kathmandu, Apr. 4: Petrol prices in Nepal have reached an all-time high, with the latest revision by the state-owned Nepal Oil Corporation (NOC) pushing the cost to Rs. 202 per litre in the Kathmandu Valley.  Diesel and kerosene have also been increased to Rs. 182 per litre.

The decision came during a meeting of NOC’s board of directors on Thursday evening, which approved a Rs. 15 per litre hike for petrol, diesel, and kerosene, effective Friday morning. This marks the third price increase in just 18 days, following significant hikes on March 15 and March 25.

“The sustained surge in global oil prices, largely driven by ongoing conflict in the Middle East, has forced this adjustment,” said Manoj Kumar Thakur, spokesperson for the corporation. 

Petrol prices now surpass the previous record set in June 2022, when petrol reached Rs. 199 per litre and diesel Rs. 192 per litre. 

After fluctuating over the years, petrol had fallen to Rs. 156 per litre and diesel to Rs. 137 per litre in January 2026. 

Prices had previously surged during the Russia–Ukraine war, but the current increase marks an unprecedented peak. This time, however, the price of petroleum products surged due to the ongoing war involving Iran, Israel, and the United States.

Over the past 18 days alone, petrol prices have jumped by Rs. 45 per litre, while diesel and kerosene have risen by Rs. 40 per litre. 

With the latest price adjustment, petrol will now cost Rs. 199.5 per litre in the first category (Chaarali, Biratnagar, Janakpur, Amlekhgunj, Nepalgunj, Dhangadhi, and Birgunj) and Rs. 201 per litre in the second category (Surkhet and Dang).

Likewise, diesel and kerosene will now cost Rs. 179.50 per litre each in the first category and Rs. 181 per litre in the second category. Earlier on Tuesday evening, NOC had also increased the price of aviation fuel.

The price of aviation fuel for domestic flights surged by Rs. 124 per litre and for international flights in Kathmandu to USD 819 per kilolitre. With the revision, the price of aviation fuel for domestic flights increased from Rs. 127 per litre to Rs. 251 per litre.

Despite the steep hikes in other petroleum products, NOC has not yet increased the price of cooking gas. Thakur said the corporation continues to face heavy financial losses due to soaring international oil costs. 

Even after the latest adjustment, NOC reports losses of Rs. 34.36 per litre on petrol, Rs. 120.54 per litre on diesel, and Rs. 416.37 per LPG cylinder, estimating fortnightly losses at Rs. 11.71 billion. The prices are likely to increase further depending on the prices in the international market.

The price hike aims to reduce the corporation’s financial strain and ensure uninterrupted fuel supply nationwide, he added, while urging consumers to use petroleum products judiciously amid the ongoing global market volatility.

He, however, claimed that  petroleum products are being supplied to the market as usual, as the Indian Oil Corporation (IOC)—Nepal’s sole supplier—has been providing fuel regularly according to demand.

Amid this challenging situation, the corporation has urged consumers and stakeholders to use petroleum products sparingly.