Fuel Prices Unlikely to Drop Soon, Could Rise Further Under Automatic Pricing
The government says fuel prices are unlikely to decrease immediately and may rise further if an automatic pricing system is implemented.
The Government of Nepal has indicated that there is little possibility of reducing petroleum prices in the near future.
Krishna Bahadur Raut, Secretary at the Ministry of Industry, Commerce and Supplies, stated that fuel prices in Nepal are largely determined by rates set by Indian Oil Corporation, making immediate reductions difficult.
Speaking at a parliamentary committee meeting under the House of Representatives, he acknowledged the burden of rising prices on consumers but noted that the government is currently selling fuel and cooking gas at a loss.
He further warned that if a fully automatic pricing system is implemented, fuel prices could increase even more. The system has not yet been introduced to protect consumers from additional financial pressure.