Nepal oil corporation clarifies refined fuel prices higher than crude oil
Kathmandu: Nepal Oil Corporation has stated that the retail price of refined petroleum products in the local market is determined based on the international price of refined petroleum products. The Corporation said there have been attempts to mislead consumers by claiming that fuel prices in Nepal are higher than crude oil prices, clarifying that such claims are not accurate.
The Corporation stated that analyses comparing fuel prices in Nepal with crude oil prices are misleading. As Nepal does not have its own refinery, it imports refined petrol and diesel directly rather than crude oil.
“The price of refined fuel is naturally higher than crude oil, so comparisons should be based on the international price of refined petroleum products, not crude,” said Corporation spokesperson Manoj Thakur. Nepal imports petroleum products from the Indian Oil Corporation (IOC), and prices are adjusted every 15 days based on the purchase rates of refined petrol and diesel received from IOC.
According to data provided by the Corporation, on April 16, 2026, the price of crude oil stood at 99.6 US dollars per barrel, petrol at 139.3 dollars, and diesel at 228.1 dollars. The highest prices during this period were recorded on April 2, 2026, when crude oil reached 118.3 dollars, petrol 262.0 dollars, and diesel 334.4 dollars per barrel.
Although the usual price gap is about 10 dollars between crude oil and petrol and around 20 dollars between crude oil and diesel, the Corporation stated that recent international developments have widened this gap to approximately 144 dollars and 216 dollars respectively. This has increased pressure on fuel-importing countries.
The Corporation also noted that factors such as customs duties, taxes, transportation, insurance, storage, and service charges affect the final retail price.
The Corporation had increased the price of diesel and kerosene by Rs 30 per liter and aviation fuel by Rs 5 per liter in Nepal effective April 30. The price of diesel and kerosene has been fixed at Rs 234.50 per liter for first-class areas, Rs 236 for second-class areas, and Rs 237 for third-class areas.
Despite the price hike, the Corporation stated that it is incurring a loss of Rs 99.16 per liter on diesel. Spokesperson Thakur said that due to the continued rise in international petroleum prices, the Corporation is expected to incur a loss of around Rs 5.75 billion over a 15-day period.