Despite receiving higher purchase rates from the Indian Oil Corporation (IOC), the Nepal Oil Corporation (NOC) has decided not to hike the retail prices of petroleum products for the time being. This move comes at a time when the corporation is facing significant financial pressure. According to recent reports, the state-owned utility is projected to incur a loss of approximately 1.91 billion rupees every fifteen days by maintaining the current price levels.
The decision to keep prices stable is primarily driven by humanitarian concerns rather than economic logic. Nepal is currently grappling with the aftermath of devastating and extraordinary flooding in the Bhotekoshi River. Recognizing the severe hardships faced by the general public due to this natural disaster, the corporation opted to shield consumers from additional financial burdens that a fuel price hike would inevitably trigger.
While the global market and import costs fluctuate, the NOC’s choice reflects a strategic pause to support national recovery efforts. However, the mounting fortnightly deficit remains a concern for the corporation’s long-term financial health. For now, motorists and households can breathe a sigh of relief as fuel costs at the pump remain unchanged despite the growing gap between international purchase prices and domestic sales.