Kathmandu [Nepal], Nov 2 – Nepal Oil Corporation (NOC) is projected to incur losses of Rs. 3.21 billion over a fortnight after deciding not to increase domestic petroleum prices despite receiving revised purchase rates from Indian Oil Corporation (IOC).
The state-owned oil supplier has maintained existing retail prices, citing consumer interests and the ongoing festive season, even as rising international petroleum prices continue to put pressure on its finances.
According to NOC spokesperson Manoj Kumar Thakur, the corporation received revised purchase prices from IOC on October 31. However, its Board of Directors decided the same day to keep domestic fuel prices unchanged.
Thakur said fluctuations in international petroleum prices, triggered by the conflict in the Middle East in recent months had made it difficult for the corporation to adjust domestic prices in line with its automatic pricing mechanism.
Despite the financial pressure, NOC decided against passing the additional costs on to consumers during the festive season.
The corporation is currently incurring losses on almost all petroleum products, except aviation fuel. Its highest loss is on liquefied petroleum gas (LPG) at Rs. 640 per cylinder, Thakur said.
Petrol prices remain unchanged at Rs. 197.50 per litre in the first category, Rs. 199 in the second category and Rs. 200 in the third category. Diesel and kerosene prices have also been retained at existing rates while a 14.2-kg LPG cylinder continues to cost Rs. 2,060.
International aviation fuel prices in Pokhara and Bhairahawa have been maintained at the breakeven point, according to the corporation. Domestic aviation fuel continues to cost Rs. 249 per litre.
International aviation fuel is priced at USD 1,697 per kilolitre in Kathmandu, USD 1,468 in Bhairahawa and USD 1,484 in Pokhara.
NOC estimated losses of Rs. 3.20 billion between October 15 and 31, 2026. Its estimated losses for Ashoj (October 1-31) stand at Rs. 5.10 billion.
The corporation has been incurring average losses on petroleum product sales since August this year. Thakur warned that continued losses without adjustments to domestic prices in line with international market rates would further weaken NOC’s financial position.
The last adjustment in domestic fuel prices was made on July 1, 2026.
