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Due to price hikes in petrole um products in the international market caused by the West Asia conflict, the prices of petroleum products in Nepal have surged significantly.

The state-owned petroleum supplier, Nepal Oil Corporation (NOC), has adjusted fuel prices twice within a very short span, citing mounting financial pressure in the petroleum sector as global fuel prices continue to rise amid the ongoing conflict in the Middle East over the past month.

Looking at the price adjustments, petrol price has surged by almost 20 per cent and diesel by 18 per cent across two revisions.

The corporation has decided to increase the prices of petrol and diesel by Rs. 15 per litre each.

A meeting of the NOC Board of Directors held on Wednesday evening decided to raise the prices of petrol, diesel, and kerosene that came into effect from Thursday evening.

Earlier on March 15, the NOC had increased the price of petrol by Rs. 15 per litre while diesel and kerosene by Rs. 20 per litre each.

With the latest price adjustment, the price of petrol in Kathmandu Valley, Pokhara, and Dipayal has reached Rs. 187 per litre.

Similarly, petrol will now cost Rs. 184.5 per litre in the first category (Chaarali, Biratnagar, Janakpur, Amlekhgunj, Nepalgunj, Dhangadhi, and Birgunj) and Rs. 186 per litre in the second category (Surkhet and Dang).

Likewise, the price of diesel and kerosene in Kathmandu Valley, Pokhara, and Dipayal has reached Rs. 167 per litre each.

Similarly, diesel and kerosene will now cost Rs. 164.5 per litre each in the first category and Rs. 166 per litre in the second category.

According to NOC, continue increase in international petroleum prices has made it difficult to adjust domestic fuel prices in line with the automatic pricing system based on rates received from Indian Oil Corporation.

Earlier, the NOC has been adjusting fuel prices every fortnightly. But this time, the NOC adjusted fuel price two times in 10 days.

As a result, the corporation estimates a loss of Rs. 5 billion for the 15-day period from March 16 to March 31.

Based on the recent price increase projection, losses could rise by an additional Rs. 15 billion over the following two weeks if current trends continue.

Between March 1 and March 24, 2026, the purchase price of petrol increased by Rs. 76 per litre, while diesel rose by Rs. 143 per litre.

This mismatch between rising international costs and limited domestic price adjustments has significantly widened the corporation’s losses, raising concerns about its ability to make timely payments to Indian Oil Corporation, it said.

Although fuel supplies from India remain stable for now, the NOC has warned that delays in payment could disrupt future supply.

Amid this challenging situation, the corporation has urged consumers and stakeholders to use petroleum products sparingly.

It has also assured the public that fuel prices will be reduced promptly once international market rates begin to decline.