The Nepal Oil Corporation (NOC), the state monopoly, has increased the prices of petroleum products by up to 15 rupees per litre as tensions in West Asia continue for a third week.
The NOC, in its three-page press release, cited rising international market rates driven by escalating tensions in West Asia as the reason for the spike in prices. As per the state monopoly, the price of petrol from Sunday morning has become dearer by NRs 15 per litre, while diesel and kerosene have been raised by NRs 10 per litre.
NOC officials said the adjustment was necessary following a rise in global oil prices amid growing geopolitical uncertainties in West Asia, a region that supplies a significant portion of the world's crude oil.
Heightened tensions there have pushed up international fuel prices and increased the cost of imports for countries like Nepal, which relies entirely on imported petroleum products.
The NOC imports petroleum products from the Indian Oil Corporation under a long-term agreement. Any fluctuation in global oil prices is reflected in the revised price list sent by the Indian supplier.
Instability in West Asia often triggers volatility in global oil markets as fears of supply disruptions push prices higher. Nepal, which depends on fuel imports, frequently adjusts domestic prices to reflect changes in the international market.
{{/usCountry}}Instability in West Asia often triggers volatility in global oil markets as fears of supply disruptions push prices higher. Nepal, which depends on fuel imports, frequently adjusts domestic prices to reflect changes in the international market.
{{/usCountry}}The latest price hike comes at a time when consumers are already facing concerns over fuel supply and rising costs of essential commodities. Economists warn that higher fuel prices could further increase transportation costs and add pressure on inflation in the coming weeks.