Fuel prices go up across Nepal as NOC revises rates

Nepal Oil Corporation (NOC) has increased retail fuel prices nationwide, effective from 12:01 am on August 3. The revision covers petrol, diesel, kerosene and aviation fuel, while cooking gas (LPG) prices remain unchanged.

What has changed

• Petrol: up by Rs 3 per litre.
• Diesel and kerosene: up by Rs 5 per litre.
• Domestic aviation fuel: up by Rs 20 per litre.
• International aviation fuel (Kathmandu departures): up by US$131 per kilolitre, according to NOC.

The latest adjustment is based on new import prices from Indian Oil Corporation received on July 31, according to NOC.

New prices in major cities

After the revision, road fuel prices in key supply areas are as follows (retail price at pumps within 15 km of NOC depots):

• Kathmandu, Pokhara, Dipayal: petrol Rs 200 per litre, diesel Rs 200 per litre.
• Surkhet, Dang: petrol Rs 199 per litre, diesel Rs 199 per litre.
• Charali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Birgunj: petrol Rs 197.50 per litre, diesel Rs 197.50 per litre.

These rates apply to NOC fuel depots and retail outlets located within a 15 km radius of the listed depots.

LPG price unchanged

Despite the increase in other fuels, NOC has kept the price of household cooking gas steady. A standard 14.2 kg LPG cylinder continues to cost Rs 2,060 per cylinder.

NOC’s financial situation

NOC says that even with this price hike, it is still facing a significant loss. According to the corporation, it is incurring around Rs 1.74 billion in losses per month due to rising international petroleum prices.

The state-owned supplier has urged consumers to use fuel efficiently and avoid waste, noting that high global prices are putting pressure on Nepal’s import bill and domestic retail rates.

What this means for vehicle owners

For Nepali vehicle buyers and owners, the new rates mean:

• Higher running costs for petrol and diesel vehicles, especially for daily commuters and long-distance transport.
• Possible fare and freight adjustments by public transport operators and cargo carriers over time.
• No immediate change in LPG costs for households, which may help ease some pressure on monthly budgets.

With petrol and diesel both now around Rs 200 per litre in major markets, buyers considering new vehicles may pay closer attention to fuel efficiency and alternative options such as hybrids or EVs to manage long-term operating costs.