The increasing price of petrol and diesel in Nepal (Essay)

            The increasing price of petrol and diesel in Nepal

Nepal is a small country in Asia. It is a land-locked country. The main means of transportation in Nepal is road transportation. Because of the advancement of science and technology, so many vehicles are introduced. Nepali people are also influenced by them. They use many vehicles. Therefore, there is more demand of petroleum fuel in Nepal. There is less use of vehicles run by electricity.

In Nepal, petrol and diesel prices can be seen increasing every day. Oil marketing company, Nepal Oil Corporation (NOC), keeps revising oil prices every day. The prices revised by the oil marketing companies are updated every day by the retailers. Whether the prices fall or rise, but for a few years, there has been a continuous increase in the prices of oil. Nepal has reached the highest level of oil prices.

The Russia-Ukraine conflict and attacks on oil and gas infrastructure in Saudi Arabia have led to further concerns about potential disruptions in crude oil supplies which have pushed up crude oil prices. The oil price rises due to the international market. Due to an increase in oil demand and no production of oil in Nepal, cent percent of its oil needs are met by importing oil from different countries like India and China. Therefore, the oil prices of other countries have a direct impact on Nepali fuel prices. Nepali oil marketing company (NOC) revises fuel prices based on international market prices. If the price rises in the international market, then it directly affects the Nepali market, and the price increases overnight.

Let's discuss why and what are the reason that the prices of petrol and diesel increase. They are:

Increase in Demand: According to the data from different sources, there is a steady increase in the demand for oil.  An increase in the number of vehicles in Nepal is being observed day by day. Due to which the demand for oil is increasing in the market, due to the no production in the country, the oil market completely depends on the import.

Rupee-dollar exchange rate: The rupee-dollar exchange rate has a major impact on purchasing oil from the international market. Therefore, there is price rise in petrol and diesel.

Government Tax: Another reason for the rise in oil prices is the tax imposed on it. The central government levies excise duty on petrol and diesel and impose sales tax and VAT.

In conclusion, we can say that the price rise of petroleum fuel does not stop. It cannot be solved either. Therefore, Nepali people should be encouraged to use rechargeable vehicles as well as vehicles that run on solar energy.