Nepal Oil Corporation Clarifies Fuel Pricing Mechanism Amid Market Concerns

Kathmandu. The Nepal Oil Corporation (NOC) has provided a clarification regarding the adjustment of petroleum product prices.

According to the corporation, the analysis suggesting that fuel is expensive in Nepal based solely on crude oil prices is inaccurate. NOC spokesperson Manoj Thakur stated that since Nepal lacks its own refineries, it is compelled to import refined petrol and diesel rather than crude oil.

'The price of refined fuel is naturally higher than that of crude oil; therefore, when comparing prices, one must look at the international price of refined petroleum products, not crude oil,' he said. Nepal imports petroleum products from the Indian Oil Corporation. Thakur explains that since the price sent by India is determined based on the 15-day average international price of refined petrol and diesel, price adjustments in Nepal are made on the same basis.

According to the data, on 16 April 2026 (3 Baishakh 2083), when the price of crude oil was 99.6 US dollars per barrel, petrol was 139.3 dollars and diesel was 228.1 dollars.

During this period, the highest price was reached on 2 April 2026, where crude oil was 118.3 dollars, petrol was 262.0 dollars, and diesel reached 334.4 dollars per barrel.

The corporation stated that while under normal circumstances there is a difference of about 10 dollars between crude oil and petrol, and about 20 dollars between crude oil and diesel, in the current international situation, this gap has widened to approximately 144 dollars and 216 dollars, respectively. This has further increased the pressure of price hikes on countries that import refined fuel.

The corporation noted that factors such as customs, taxes, transportation, insurance, storage, and service charges also influence the final retail price, which is why fuel prices vary from country to country.