Why fuel prices have been rising and rising in Nepal ?

 Nepal imported Rs164 billion worth of petroleum products in the last fiscal year ended mid-July.

In the past one year, petrol has become dearer by Rs25 per litre in the Kathmandu Valley, surging from Rs96 to Rs121 per litre. Diesel and kerosene now cost Rs104 per litre, increasing by Rs19 from Rs93 per litre a year ago.

Despite the increased amount Nepal Oil Corporation collects on every sale, the state-owned monopoly says its monthly estimated loss still hovers at Rs1.4 billion.

Nepal imported Rs164 billion worth of petroleum products in the last fiscal year ended mid-July. The relentless rise in fuel prices has spread dismay among consumers, with many wondering what has caused prices to jump so steeply again and again.

Here’s everything you need to know about petroleum prices in Nepal.

Why is the price of fuel rising again?

According to Binitmani Upadhyaya, the major reason for fuel prices going up in Nepal is the increase in the price of crude oil in the international market, especially after many countries lifted their lockdowns. On April 20, 2020, the price of crude oil turned negative for the first time in history, falling to minus $37.63 per barrel. That means producers pay buyers to take away oil because they don't have anywhere to store it.