Petrol Price in Nepal
Nepal imports nearly all of its petrol from India; thus, Nepal’s petrol prices reflect India’s wholesale price of fuel and the worldwide price variations of crude oil. Approximately today, petrol costs about NPR 161 per litre in Nepal, with slight price variations based on geographical location. The petrol prices charged by Nepal Oil Corporation are dependent on the cost of importing petrol from Indian Oil Corporation and any changes to the global market’s petrol prices. Due to this reliance on India for petrol, gas prices in Nepal will either increase or decrease whenever gas prices increase or decrease in India.
Read More: Petrol Price in UP (Uttar Pradesh)
Today’s Petrol Price in Nepal
The cost of petrol in Nepal, as of the most recent postings by Nepal Oil Corporation, is estimated at around NPR 161 per litre. Cost Considerations include both transportation costs for importing petrol from India, as well as fluctuations in crude oil prices on global markets. There are minor price discrepancies between different parts of Nepal; however, the average price of petrol in the entire country is about NPR 161/litre.
Petrol Price in Nepal (Table)
| Petrol prices | Price (NPR/Litre) | Percent change |
| Current price | 161.00 | – |
| One month ago | 161.00 | 0.0 % |
| Three months ago | 161.00 | 0.0 % |
| One year ago | 160.00 | 0.6 % |
Factors Affecting Petrol Prices in Nepal
1. The Cost of Imported Fuel in India
As Nepal acquires all of its petrol through the Indian Oil Company (IOCL), the wholesale price of IOC in India serves as the base price for petrol in Nepal. Nepal’s fuel costs will change as the Indian Refinery Rate Changes.
2. The Cost of Crude Oil Purchased Worldwide
Nepal is a dependent importer of petrol, and the adjustments made to the cost of crude oil on the global market (up or down) impact the supply price of petrol shipped to Nepal.
3. Conversion Rate: INR to NPR
Nepal makes its petrol purchases in INR (Indian Rupees). When the INR appreciates (strengthens) relative to the NPR (Nepalese Rupees), the price of petrol in Nepal increases, while when the INR depreciates (weakens) against the NPR, the price of gas decreases.
4. Taxation and Duty Structure
In determining the final retail price of fuel in Nepal, the taxes and duties levied by the Nepal Oil Corporation (NOC) apply, in addition to the value-added tax (VAT), and therefore contribute to the total retail price of fuel in Nepal.
5. Transportation and Freight
There are freight, logistics, and distribution costs involved in delivering fuel from the Indian refineries to some of the cities in Nepal that go into determining the retail price of fuel in Nepal.
6. India’s Pricing Decisions for Nepal
The pricing decisions made by the Indian Oil Corporation (IOC) with regard to their exported rates, as well as their supply costs and margins from their refiners, directly impact the price of fuel that Nepal pays to the IOC, and thus India is an important factor in determining fuel prices in Nepal.
Why Petrol Is Often Cheaper in Nepal Than India
When compared to petrol costs in India, which are often considerably higher due to greater levels of fuel taxes/fees, a smaller amount of taxes/fees is applied to the sale of petrol in Nepal than those applied to petrol sales in India, leading to significantly lower prices being paid by consumers in Nepal for petrol.
How Petrol Prices Are Calculated in Nepal
- The cost of importing petrol from India: The base cost is the price paid to Indian Oil Corporation (IOC), which purchases petrol at the current market rate.
- Freight and Transportation Charges: Freight and transportation expenses will vary by city in Nepal because of the different locations of refineries, and so this information is not available here.
- Taxes/Duties: Include VAT (Value Added Tax), customs duties and other government-imposed taxes.
- NOC Margin: A percentage margin is added by Nepal Oil Corporation to cover operational costs and profits.
- Regular Price Updates: Prices are adjusted regularly based on changes in India’s supply price or worldwide crude prices.
Impact of Petrol Price on Nepal’s Economy & Consumers
- Transportation Costs: Increasing the price of petrol will increase the cost of transporting goods, people using public transportation or taxi services, and businesses using freight services.
- Goods and Services: Higher costs of petrol will ultimately drive up the cost of essential goods and services, which will be experienced by every state in Australia.
- Household Budgets: Households must now pay more for fuel to travel on a daily basis, as well as to meet their energy needs; thus, reducing the amount of disposable income they have available.
- Business and Tourism: Businesses and the tourism industry are affected by fluctuations in the price of petrol, as they impact all aspects of logistics, production, and travel associated with tourism.
- Inflation: Increases in petrol prices contribute to inflation and diminish purchasing power within an economy.
How to Check Petrol Price in Nepal Online
- Website of Nepal Oil Corporation: The updated fuel price can be accessed from the official website of NOC (Nepal Oil Corporation). The information is revised daily.
- Mobile Apps: There are several mobile applications which provide users of Nepal with real-time updates of petrol and diesel fees across the country.
- News Sites: Many websites that are national in scope provide updated article information related to fuel prices.
- Facebook and other Social Media: Users can also follow the official NOC social media accounts to be able to get notifications about the current fuel price.
- Alerts from NOC: If you have signed up for a service, then you will receive an alert every time there is a change in fuel price.
- Cross-Border: The significant disparity between petrol prices in India and Australia may promote illicit fuel smuggling, which could have negative consequences for the legal market and government revenues.
Conclusion
Similar to India’s dependence on petroleum imports, Nepal relies solely on Indian imports for fuel. The price of petrol in Nepal is heavily dependent upon Indian supply and demand. A variety of reasons contribute to this dependency: imported ranked costs, the costs associated with inventory and delivery, taxation, and the margin generated by the Nepal Oil Corporation. Because of the burden created by three taxes placed on petrol in addition to the non-taxed delivery costs, petrol is less expensive in comparison to petrol sold in India. Global oil prices and the changing supply price for petrol in India have an immediate impact on petrol prices in Nepal. This information will help consumers and businesses prepare for expected price changes when developing their financial plans.
FAQs
Why does Nepal import petrol from India?
Nepal does not have any large-scale refining capacity for petrol and imports petrol through supply contracts with the Indian Oil Company (IOC).
Why is petrol in Nepal often cheaper than in India?
Nepal has lower taxes/duties on fuel than other neighbouring countries and distributes all fuel through the sole distribution channel of NOC; therefore, the retail prices of fuel remain relatively low.
How does the petrol price affect everyday life in Nepal?
An increase/decrease in petrol prices will result in an increase/decrease in the cost to transport goods and, therefore, an increase/decrease in the amount businesses must charge consumers to cover that higher cost of transportation, the cost of living, and inflation.