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Motorists in the Kathmandu Valley faced mounting difficulties in purchasing petroleum products on Wednesday, despite expectations of relief following Nepal Oil Corporation’s (NOC) announcement of a significant price cut.

Instead of benefiting from cheaper fuel after enduring three months of soaring prices triggered by the US-Iran conflict, consumers were met with shuttered private fuel stations displaying “No Petrol” signs. The closures forced long queues at outlets operated by the Nepali Army and Nepal Police, where limited supplies were available.

NOC spokesperson Manoj Thakur said the shortage emerged because most private fuel stations in the Valley refrained from purchasing fuel on Tuesday, anticipating further price reductions. “As a result, service recipients have had to suffer with the shortage,” Thakur told Republica.

In its latest revision, NOC slashed petroleum prices sharply in line with the steep fall in international crude rates. Price of petrol has been reduced by Rs 20 per litre, diesel and kerosene by Rs 30 per litre, and liquefied petroleum gas (LPG) by Rs 100 per 14.2-kg cylinder.

The adjustment follows a broader decline in global oil prices. Despite ongoing geopolitical tensions between the United States and Iran, international media reported that the gradual normalization of shipping routes has eased supply concerns, pushing Brent crude down to around US$72 per barrel - its lowest since the start of the US-Iran conflict in late February.

Under its automatic pricing system, NOC revises domestic fuel rates fortnightly based on purchase prices from the Indian Oil Corporation (IOC).

Thakur said the corporation has mobilized three monitoring teams in the Kathmandu Valley to address the shortage. “The teams have been instructed to monitor closed fuel stations and seal them immediately if they are found not distributing fuel. Likewise, the provincial offices have been asked to monitor outside the valley as well,” he added.

Petroleum depots were reportedly reluctant to purchase supplies from NOC, suspecting further price drops, and subsequently shut down their outlets.

Madhav Timalsina, president of the Consumer Rights Investigation Forum, condemned the irregularities in the petroleum market as a “serious crime against consumers.” He urged the government and concerned authorities to take stern action against those involved in such market malpractices.