Nepal Oil Corporation Keeps Fuel Prices Unchanged Despite Higher IOC Rates
Nepal Oil Corporation has kept domestic fuel prices unchanged despite higher purchase costs from Indian Oil Corporation, citing the impact of recent Bhote Koshi floods and other natural disasters.
Nepal Oil Corporation (NOC) has decided to maintain existing domestic petroleum prices despite a significant increase in the purchase prices set by Indian Oil Corporation (IOC).
Under the new IOC price received by NOC on September 16, 2026, the purchase price of petrol increased by Rs. 12.40 per litre, while diesel increased by Rs. 4.68 per litre. Despite the higher import costs, the NOC Board of Directors decided not to immediately pass the additional burden on to consumers, citing the difficult circumstances following the Bhote Koshi River floods and other natural disasters.
The unchanged fuel prices came into effect from 12:01 AM on September 16, 2026. NOC said the decision also comes as the corporation has been unable to fully implement the automatic pricing mechanism in recent months amid fluctuations in international petroleum prices linked to the ongoing Middle East conflict.
Petrol and diesel/kerosene prices remain unchanged across NOC’s three pricing categories. In the first category, both products are priced at Rs. 197.50 per litre, Rs. 199 per litre in the second category and Rs. 200 per litre in the third category.
The first category includes Charaali, Biratnagar, Janakpur, Amlekhganj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj. Surkhet and Dang fall under the second category, while Kathmandu, Pokhara and Dipayal are in the third category.
NOC has also reduced the price of LPG for consumers located within 50 kilometres of LPG industries. The price of a 14.2-kg cylinder has been lowered from Rs. 2,165 to Rs. 2,060.
The corporation has maintained the domestic aviation fuel price at Rs. 249 per litre. For international flights from Kathmandu, aviation fuel has been priced at US$1,697 per kilolitre.
Keeping retail fuel prices unchanged is expected to increase NOC’s financial burden. The corporation estimates a loss of approximately Rs. 1.9169 billion over a 15-day period if domestic prices remain unchanged while international petroleum prices continue to rise.
NOC said the projected loss reflects the gap between higher IOC import costs and unchanged domestic retail prices. The corporation has therefore opted to absorb the additional cost rather than immediately transfer it to consumers during the current crisis