Nepal Oil Corporation Adjusts Fuel Prices, Raises Diesel by NPR 3 per Liter

Kathmandu — Nepal Oil Corporation has revised the retail prices of petroleum products, increasing the price of diesel by NPR 3 per liter while keeping the prices of petrol and liquefied petroleum gas (LPG) unchanged. The adjustment follows new procurement rates received from Indian Oil Corporation (IOC) on Magh 17, 2082.

According to the corporation, although the procurement cost of diesel, petrol, and LPG increased under the latest IOC pricing, the full impact has not been passed on to consumers. Diesel procurement costs rose by NPR 4.66 per liter, but only a partial adjustment was made in consideration of consumer welfare.

The revised prices came into effect from 12:01 a.m. on February 1, 2026 (Magh 18, 2082). Under the new rate structure, diesel and kerosene prices in first-category depot areas have been set at NPR 136.50 per liter. In second-category areas, the price has been fixed at NPR 138 per liter, while third-category areas will now pay NPR 139 per liter. Previously, prices in these categories stood at NPR 133.50, NPR 135, and NPR 136 per liter respectively.

In contrast to diesel, aviation fuel prices have been adjusted downward. The price of aviation turbine fuel for domestic flights has been reduced by NPR 1 per liter. For international flights, the price in Kathmandu has been cut by USD 7 per kiloliter, providing some relief to airlines operating from the capital.

Nepal Oil Corporation stated that in Pokhara and Bhairahawa, international aviation fuel is being sold at a break-even rate. This indicates that prices in these locations have been set to avoid operational losses rather than to generate profit.

Despite an increase in the procurement cost of LPG by NPR 45.49 per cylinder, the corporation has decided to keep the retail price unchanged for now. Officials said the decision was taken to prevent additional financial pressure on households, particularly given the widespread reliance on LPG for cooking.

Fuel prices are determined based on depot or office locations within a 15-kilometer radius, which forms the basis for regional price categorization. First-category depots include Charali, Biratnagar, Janakpur, Amlekhgunj, Bhairahawa, Nepalgunj, Dhangadhi, and Birgunj. Surkhet and Dang fall under the second category, while Kathmandu, Pokhara, and Dipayal are classified under the third category.

Overall, the latest adjustment reflects an attempt by Nepal Oil Corporation to balance rising international procurement costs with domestic consumer protection, limiting price hikes where possible while maintaining financial sustainability.