Skip to main content

Why Is Petrol Bought for 150 Rupees in India Sold at 219 Rupees in Kathmandu?

In the border market of Rupaidih, adjoining India, petrol is available at 97 Indian rupees, equivalent to 155.20 Nepali rupees per liter. Across the border in Nepalgunj, located in Rupaidih of Uttar Pradesh, the petrol price stands at 216.50 Nepali rupees per liter. This means that after traveling roughly six kilometers from Nepal, petrol can be purchased in India at 61 rupees cheaper than in Nepal. Due to petrol prices being 50 to 60 rupees cheaper in Indian border markets compared to Nepali markets, many Nepali vehicles have started crowding Indian fuel stations in the border regions to refuel.

However, despite the lower price, experienced individuals report that refueling at Indian petrol stations is not as straightforward as in Nepal. Some Nepalis, tempted by the prospect of cheaper fuel amid fuel shortages in India, have faced hours-long queues, and some have even returned empty-handed, as recounted by those affected.

At several petrol pumps in the Rupaidih market across Nepalgunj, notices state there is no availability of diesel or petrol. At pumps where fuel is being distributed, there are long queues of cars and motorcycles. CL Chaudhary, encountered at a petrol station connected to Jamunaha checkpoint in Nepalgunj, shared that he waited one and a half hours in line to buy petrol worth 1,000 Indian rupees. He said, “Initially, people in the line said Nepal-registered motorcycles would not be served petrol, but I directly asked the attendant, and after he confirmed it was allowed, I patiently waited about one and a half hours under the sun in Tantolapur.”

On March 27, India decided to reduce the excise duty on petrol and diesel by 10 Indian rupees. According to the Indian Ministry of Petroleum and Gas, the Indian government is selling petrol at a loss of 26 Indian rupees per liter and diesel at a loss of 81.90 Indian rupees per liter. Manojkumar Thakur, spokesperson for Nepal Oil Corporation, explained that fuel in India is cheaper due to these losses borne by the government alongside tax exemptions. Meanwhile, in Nepal, the high cost of fuel has prompted protests and demands for subsidies from various student organizations and political parties, urging the government to provide relief.