Nepal Hiked Petrol Prices to Ease Shortages

The government of Nepal hiked petrol prices 9 per cent as of Thursday, the second price increase in two months, to help ease supply shortages.

The state oil company Nepal Oil Corporation (NOC) said a litre of petrol would cost 80 rupees (1.26 dollars), an increase of almost 7 rupees.

However, prices of other petroleum products such as diesel, kerosene and Liquefied Petroleum Gas remained unchanged.

NOC which imports all petroleum products from Indian Oil Corporation has been unable to pay more than 2 billion rupees for the imports, prompting the Indian authorities to slash supplies by almost half.

The Indian move has led to severe fuel shortages across Nepal with motorists having to spend hours in queue to get a few litres of petrol.