KATHMANDU — Nepal Oil Corporation raised fuel prices four times during April 2026, lifting petrol in Kathmandu to NPR 219 per litre (USD 1.48) and diesel to NPR 207 per litre (USD 1.40) under the revised rates. Over 18 days in April, petrol prices climbed by NPR 45 per litre, a 60 percent increase, while diesel and kerosene rose by NPR 40 per litre.

Petrol had been priced at NPR 137 per litre (USD 0.93) in January 2026. Diesel reached NPR 139 per litre in February 2026, a 31 percent increase from the prior month. The current Kathmandu petrol rate is higher than retail prices in Pakistan (USD 1.36), Sri Lanka (USD 1.30), Bhutan (USD 1.06), the Maldives (USD 1.04), India (USD 1.02), Afghanistan (USD 0.95), and Bangladesh (USD 0.87).

Nepal Oil Corporation stated that international market prices for petroleum products have been continuously rising due to the ongoing war in West Asia. The conflict involving the United States, Israel, and Iran has disrupted export flows through the Strait of Hormuz, through which nearly one third of the world's seaborne oil passes. Nepal is completely dependent on imported petroleum products, with the corporation functioning as the exclusive importer and distributor, largely sourcing supplies from India under a long-standing bilateral arrangement.

NOC Executive Director Chandika Bhatta reported a fortnightly loss of approximately NPR 14 billion and a daily loss of NPR 930 million based on data from March 30 to April 8, 2026. A Cabinet meeting reduced customs duty and infrastructure tax on fuel by 50 percent, but prices continued to rise as global crude oil prices increased. The government introduced a two-day weekend, Saturday and Sunday, for government offices and educational institutions to cut fuel consumption, reduced fuel quotas for high-ranking officials, and began controlling wholesale fuel distribution. The corporation also directed distributors to supply only half-filled cooking gas cylinders to households due to acute LPG shortages.

The Department of Transport Management approved a 16.71 percent rise in passenger fares on inter-provincial routes, along with cargo rate increases of 21.68 percent on hill routes and 15.75 percent on Tarai routes. The Federation of Truck Transport Entrepreneurs of Nepal issued a statement reminding authorities of a prior written agreement requiring automatic fare adjustments whenever fuel prices fluctuate by more than NPR 5 per litre.

"As freight charges have increased by three times, market prices could rise by up to 50 percent. If tensions escalate further, it will be a disaster." said Rajendra Sangraula, president of the Nepal Freight Forwarders Association.

Prem Lal Maharjan, president of the National Consumer Forum, criticized the corporation's response. "The higher fuel price has already started to impact consumers. The corporation seems focused only on calculating its losses. Who will hear consumer grievances?" he said.

On April 16, 2026, Joint Student Unions organized a protest at Maitighar in Kathmandu demanding the immediate repeal of taxes on petroleum products. Protesters carried placards calling for a price adjustment and a relief package for the public.

In the first seven months of fiscal year 2025/26, Nepal spent NPR 139.10 billion on imports of petrol, diesel, and LPG, according to the Department of Customs. The World Bank projected Nepal's economic growth to slow to 2.3 percent in fiscal year 2025–26, down from 4.6 percent in 2024–25.