Management Failures at Nepal Oil Corporation Lead to Fuel Shortage Following Price Leak

Following a significant reduction in petroleum product prices by Nepal Oil Corporation, traders have been reluctant to purchase fuel, resulting in a shortage in the market. Consumer rights activists have strongly criticized both the corporation’s management and the traders for leaking price reduction information and halting supplies. The corporation has deployed monitoring teams and claims that fuel supply will stabilize by this afternoon. Kathmandu, 17 Ashar.

Soon after Nepal Oil Corporation announced the price cuts on petroleum products, an artificial fuel shortage emerged in the market. Although prices were officially lowered starting Wednesday, buyers have faced challenges in obtaining fuel. Consumers coming to gas stations from Sundarharaye to Kifayati petrol are reportedly turning away after seeing signs stating “Petrol and Diesel Not Available,” while others have endured long queues under the sun at government-operated pumps. The corporation reduced petrol prices by NPR 20 per liter, diesel and kerosene by NPR 30 per liter, and aviation fuel by NPR 40 per liter.

Due to competition, petrol prices in the Kathmandu Valley have settled at NPR 197 per liter, while diesel and kerosene are NPR 195 per liter. However, private petrol pump operators, claiming the price cuts were excessive, have stopped sales and distribution. Pumps across Kathmandu, Lalitpur, and Bhaktapur remained closed since morning. Likewise, consumers have reported closures in locations including Birgunj and Pokhara. The closure of private stations has caused long queues at pumps run by the Nepal Army, Nepal Police, and Armed Police Force. The shutdown of pumps on the day the prices were reduced highlights the profit-driven motives of traders and exposes the management weaknesses of the corporation.