Processed fuels cost more than crude oil: NOC – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATHMANDU, APRIL 18

In light of growing public concern over rising fuel prices in the domestic market, the Nepal Oil Corporation (NOC) has stated that retail prices of petroleum products are determined in accordance with international market rates.

The corporation further clarified that prices of refined petroleum products are inherently higher than those of crude oil, primarily because Nepal lacks domestic refining capacity. Consequently, the country is compelled to import fully processed fuels rather than crude oil.

While assessing petroleum prices in Nepal, comparisons should not be drawn with crude oil prices, but rather with the prices of refined fuels, said NOC spokesperson Manoj Thakur. The NOC procures petroleum products from the Indian Oil Corporation (IOC), with prices being automatically adjusted every 15 days based on the rates charged by the IOC.

According to data cited by the NOC, as of April 16, 2026, the price of crude oil stood at 99.6 US dollars per barrel, while petrol was priced at 139.3 US dollars and diesel at 228.1 US dollars.

Under normal circumstances, the price differential between crude oil and petrol is typically around 10 US dollars, and approximately 20 US dollars for diesel. Recently, however, these gaps have widened significantly to 144 US dollars and 216 US dollars, respectively, largely due to global market disruptions stemming from heightened tensions in the Gulf region.

As a consequence, countries reliant on imported refined fuels are facing intensified financial pressure from escalating prices. The NOC also noted that factors such as customs duties, taxation, transportation, insurance, storage, and service charges contribute to the final retail price of fuel.

On April 16, the NOC increased the prices of diesel and kerosene by Rs 30 per litre, and aviation turbine fuel by Rs 5 per litre. Under the current pricing structure, diesel and petrol are priced at Rs 234.50 per litre in the first cluster, Rs 236 in the second cluster, and Rs 237 in the third cluster.

Despite the recent price adjustment, the NOC continues to incur a loss of Rs 99.96 per litre on diesel. Owing to the sustained upward trend in international petroleum prices, the corporation is projected to incur losses amounting to approximately Rs 5.75 billion over the next 15 days.