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Nepal Oil Corporation (NOC) has increased the retail prices of petrol, diesel and aviation fuel after a fresh rise in fuel import costs from India, while claiming it has absorbed a significant portion of the price hike to protect consumers.

The revised prices came into effect from 12:01 am on Monday, following the latest fuel price revision by Indian Oil Corporation (IOC) on July 31.

Under the new rates, petrol has become costlier by Rs 3 per litre, while diesel and kerosene have increased by Rs 5 per litre. The price of domestic aviation fuel has also been raised by Rs 20 per litre. International aviation fuel for flights departing Kathmandu has been increased by US$ 131 per kilolitre, while rates for Pokhara and Bhairahawa have been maintained at the break-even level. The price of LPG remains unchanged.

According to the revised pricing structure, petrol will now cost Rs 197.50 per litre in the first price category, Rs 199 in the second category and Rs 200 in the Kathmandu Valley and other third-category locations.

Similarly, diesel and kerosene will now be sold at Rs 191.50 per litre in the first category, Rs 194 in the second category and Rs 195 in the third category.

NOC said the latest import prices from IOC had risen by Rs 20.19 per litre for petrol, Rs 39.67 per litre for diesel, and Rs 19.06 per litre for aviation turbine fuel. However, the corporation said it opted for only a partial adjustment in retail prices, citing consumer interest.

Despite the latest revision, the state-owned corporation said it is still projected to incur monthly losses of around Rs 1.74 billion because of continued volatility in international petroleum markets.

The corporation urged consumers to use petroleum products prudently and appealed for public cooperation as it continues to face financial pressure from sustained increases in global fuel prices.

NOC's fuel prices vary by geographical zone, with the first category covering areas including Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj, the second category including Surkhet and Dang, and the third category covering Kathmandu, Pokhara and Dipayal.