India Announces First Fuel Price Hike in Four Years as Nepal Raises Prices Six Times

News Summary

Following the conflict involving the US and Israel attacking Iran, India has implemented its first fuel price increase in four years. Meanwhile, Nepal has raised petroleum prices six times, with petrol currently priced at NPR 217 per liter. The Indian government has introduced a frugality plan to reduce fuel consumption, and Prime Minister Modi has urged citizens to avoid unnecessary travel.

May 15, Kathmandu – Citing the ongoing war triggered by US and Israeli attacks on Iran, India has implemented its first fuel price hike in four years to offset losses caused by rising crude oil prices in the international market, according to Reuters citing Indian dealers. In contrast, Nepal, which relies on India for fuel supplies, has increased fuel prices at least six times during this period. Currently, petrol costs NPR 217 per liter in Nepal, diesel and kerosene are priced at NPR 225 per liter, and LPG cylinders are NPR 2,160 each.

Previously, on April 15, Nepal Oil Corporation set fuel prices at NPR 219 per liter for petrol, NPR 237 per liter for diesel and kerosene, and NPR 2,010 per LPG cylinder. In India, government oil companies have raised retail prices of petrol and diesel by 3 rupees per liter (approximately 3%). India, the world’s third-largest oil importer and consumer, has been the last major economy to raise fuel prices due to the conflict that began with the US and Israeli attacks on Iran.

The Indian government has also launched a frugality campaign aimed at reducing fuel consumption, and Prime Minister Narendra Modi has called on the public to avoid unnecessary travel to manage demand.