Nepal Keeps Petrol and Diesel Prices Unchanged Despite Higher Import Costs, LPG Gets Cheaper Near Industries

KATHMANDU: Nepal Oil Corporation (NOC) has decided to keep petrol and diesel prices unchanged despite a significant increase in the prices it pays to the Indian Oil Corporation (IOC).

NOC said the decision was taken considering the difficult circumstances created by the recent Bhote Koshi floods and other natural disasters. Instead of immediately passing the higher import costs on to consumers, the corporation will absorb the additional burden.

The unchanged prices came into effect from 12:01 a.m. on September 16, 2026.

IOC Raises Petrol and Diesel Costs

According to NOC, it received new purchase prices from IOC on September 16.

Under the revised rates:

• Petrol became Rs 12.40 more expensive per litre for NOC.

• Diesel became Rs 4.68 more expensive per litre.

Despite these increases, the NOC Board of Directors decided not to raise domestic retail prices.

Current Petrol and Diesel Prices

The retail prices of petrol and diesel/kerosene remain unchanged across Nepal's three pricing categories.

• First category: Rs 197.50 per litre
  Charaali, Biratnagar, Janakpur, Amlekhganj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj

• Second category: Rs 199 per litre
  Surkhet and Dang

• Third category: Rs 200 per litre
  Kathmandu, Pokhara and Dipayal

This means consumers in Kathmandu and other third-category areas will continue paying Rs 200 per litre for petrol and diesel/kerosene.

NOC Could Lose Nearly Rs 2 Arba

Keeping fuel prices unchanged is expected to put significant financial pressure on NOC.

The corporation estimates that it could suffer a loss of approximately Rs 1.9169 arba over 15 days if retail prices remain unchanged while international petroleum prices continue to rise.

The additional loss comes from the gap between the higher import cost and the unchanged domestic selling price.

NOC has effectively chosen to absorb the additional cost rather than immediately transfer it to consumers during the current crisis.

LPG Price Reduced

While petrol and diesel prices remain unchanged, NOC has announced a reduction in the price of LPG for consumers located within 50 kilometres of LPG industries.

The price of a 14.2-kg LPG cylinder has been reduced from:

Rs 2,165 to Rs 2,060

Eligible consumers can now purchase the cylinder for Rs 2,060.

Aviation Fuel Prices Remain Unchanged

NOC has also maintained aviation fuel prices.

• Domestic aviation fuel: Rs 249 per litre

• International aviation fuel in Kathmandu: US$1,697 per kilolitre

Automatic Pricing System Faces Pressure

NOC said it has been unable to fully implement the automatic pricing mechanism in recent months due to fluctuations in international petroleum prices.

The corporation also pointed to the impact of the ongoing conflict in the Middle East on international fuel prices.

With IOC's latest rates increasing the cost of petrol and diesel, NOC's decision to hold domestic prices steady means the additional financial pressure will remain with the corporation for now.

Fuel Prices Held Steady During a Difficult Period

The decision comes as Nepal continues to deal with the impact of the Bhote Koshi floods, which have affected communities, infrastructure and supply systems.

By keeping petrol and diesel prices unchanged, NOC has chosen not to add an immediate fuel-price burden on consumers while the country is dealing with the aftermath of the disaster.

At the same time, the corporation will have to manage the growing financial pressure created by higher import costs.