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Diesel and kerosene prices have surpassed petrol for the first time in Nepal following a sharp price hike by the Nepal Oil Corporation (NOC).

According to a decision made during the NOC board meeting on Wednesday evening, the price of diesel and kerosene has been increased by Rs. 30 per litre, bringing the new rate to Rs. 237 per litre in Kathmandu Valley.

In contrast, petrol remains cheaper at Rs. 219 per litre. The revised prices came into effect from Thursday morning. The corporation has also raised the price of aviation fuel for domestic flights by Rs. 5 per litre, while keeping the prices of petrol and cooking gas unchanged in this round of adjustment.

Earlier on April 9, the NOC increased the price of petrol by Rs. 17 per litre, while diesel and kerosene each hiked by Rs. 25 per litre.

Similarly, the price of liquefied petroleum gas (LPG) had gone up by Rs. 100 per cylinder. The corporation had also raised the price of aviation fuel for domestic flights by Rs. 6 per litre. Regionally, diesel and kerosene now cost Rs. 237 per litre in first category areas such as Kathmandu, Pokhara and Dipayal.

Prices are slightly lower in first-category areas such as Chaarali, Biratnagar, Janakpur, Amlekhgunj, Nepalgunj, Dhangadhi, and Birgunj, at Rs. 234.50 per litre, and in second-category areas, including Surkhet and Dang, at Rs. 236 per litre.

Similarly, petrol will cost Rs. 216.5 per litre in the first category areas - Chaarali, Biratnagar, Janakpur, Amlekhgunj, Nepalgunj, Dhangadhi, and Birgunj - and Rs. 218 per litre in the second category areas, including Surkhet and Dang. The price of domestic aviation fuel has been set at Rs. 262 per litre.

Meanwhile, liquefied petroleum gas (LPG) remains at Rs. 2,010 per cylinder, with half cylinders priced at Rs. 1,005.

This marks the fourth price revision since March 15. Over this period, diesel and kerosene prices have risen by a total of Rs. 95 per litre, while petrol has increased by Rs. 62 per litre.

Previously, petrol was priced at Rs. 157 per litre, and diesel and kerosene at Rs. 142 per litre each. Due to continued price hikes caused by the ongoing war involving Iran, Israel, and the United States, the prices of petroleum products in Nepal have reached an all-time high.

Petrol and diesel prices have now surpassed the previous record set in June 2022, when petrol reached Rs. 219 per litre and diesel Rs. 237 per litre.

Despite a government decision to offer a 50 per cent discount on customs duty and infrastructure development tax, NOC said it was compelled to increase prices due to mounting financial losses.

The corporation stated that domestic fuel prices have not been fully adjusted to match international market rates in an effort to cushion consumers. Even after the latest price revision, NOC reports a loss of Rs. 99.16 per litre on diesel sales.

Overall, the corporation estimates a fortnightly loss of approximately Rs. 5.75 billion in the sale of petroleum products. According to NOC, it incurred a loss of Rs. 7.81 billion over the past 15 days in petroleum sales.