Highlights

• Nepal Oil Corporation reduces petrol price by NPR 3 per liter

• Diesel and kerosene prices drop by NPR 1 per liter

• New rates apply across depot categories nationwide

• Fuel prices remain tied to Indian Oil Corporation import costs

• Transport and logistics sectors see immediate operating cost relief

• Fuel volatility continues to shape vehicle buying behavior in Nepal

Fuel Prices in Nepal Updated Again

Fuel prices in Nepal are back in focus after Nepal Oil Corporation announced a fresh reduction in petroleum product rates. This latest revision offers some relief to private vehicle owners, commercial operators, and businesses dependent on road transport.

The change follows a drop in import costs from Indian Oil Corporation, Nepal’s sole fuel supplier. While the reduction may look modest on paper, it has a noticeable impact when multiplied across daily commutes and large fleets.

New Petrol Diesel and Kerosene Prices

The revised fuel prices are structured by depot category, which determines regional pricing across Nepal.

Latest Fuel Price List in Nepal

Fuel Type	Average Price per Liter
Petrol	NPR 156
Diesel	NPR 136
Kerosene	NPR 136

Prices may vary slightly depending on whether the area falls under first, second, or third depot category. Kathmandu Valley typically sits at the higher end of the pricing band.

Why Fuel Prices Keep Changing in Nepal

Nepal does not refine fuel domestically. Every liter sold at the pump is imported, mainly from India.

Key factors influencing fuel prices include

• Import cost revisions by Indian Oil Corporation

• Global crude oil market fluctuations

• Currency exchange rates

• Transportation and storage costs within Nepal

Because of this dependency, fuel prices in Nepal are inherently reactive rather than predictive.

What This Means for Everyday Drivers

For individual motorists, the benefits show up quickly.

• Lower monthly fuel bills for daily commuters

• Reduced running costs for taxis and ride sharing vehicles

• Slight relief from transport driven inflation on goods

For businesses running delivery vans, buses, or logistics fleets, even a one rupee drop per liter compounds into meaningful savings over time.

Impact on Nepal’s Auto Market

Fuel price uncertainty continues to shape buying decisions.

Short term effects

• Petrol and diesel vehicles become slightly cheaper to run

• Buyers delay switching to electric vehicles during price dips

Long term trend

• Interest in fuel efficient cars, hybrids, and EVs remains strong

• Rising awareness of total ownership cost favors electrification

• EV charging infrastructure growth keeps momentum intact

Fuel price cuts may slow EV adoption briefly, but they do not reverse the bigger shift underway.

Fuel Price Trends Over the Past Year

Nepal has seen frequent revisions rather than long periods of stability.

Period	Price Movement
Early 2025	Multiple price cuts
Mid 2025	Selective hikes
Late 2025	Mixed adjustments
Early 2026	Gradual reductions

This pattern highlights how closely Nepal’s fuel economy mirrors regional and global energy markets.

What to Expect Next

Fuel prices in Nepal are unlikely to stay flat for long.

If global crude prices remain soft and import costs fall further, more reductions could follow. On the other hand, any disruption in supply or currency pressure could quickly push prices back up.

For consumers, the takeaway is simple
fuel prices may fluctuate, but planning for efficiency matters more than timing the pump.