Nepal Fuel Prices Set to Surge Amid IOC Rate Hike

Fuel prices in Nepal are expected to increase following revised purchase rates from India's Indian Oil Corporation (IOC). The Nepal Oil Corporation (NOC) has received the updated rates, but new retail prices have yet to be announced. NOC said a significant increase in procurement costs requires approval from its board of directors before revisions can take place.

The corporation reviews prices on the 1st and 16th of every month based on IOC's updated rates. Although the new rates were received on Friday, the board has not met due to weekend public holidays. Under an automatic pricing mechanism, management can adjust prices by up to Rs. 2 per liter.

Officials stated that IOC's latest price revision reflects higher international crude oil prices, making a domestic fuel price increase almost certain. The extent of the hike and its implementation date will be announced after the board meeting.