Currently, in the Nepali market, petroleum products, petrol are priced at Rs 217 per liter, diesel and kerosene at Rs 225 per liter, and aviation fuel at Rs 269 per liter. Similarly, the price of LPG gas for cooking is Rs 2,160 per cylinder.
KATHMANDU:- The price of crude oil, which has been steadily rising in the international market, has fallen after the US and Iran reached an agreement on a peace deal that would end the war, lift US sanctions on Iran, and reopen the Strait of Hormuz.
Global crude oil prices fell on Monday after US President Donald Trump and Pakistan Prime Minister Shahbaz Sharif, the mediator, confirmed the deal on Sunday. Brent crude, the global benchmark for crude oil, fell 3.9 percent to around $84 a barrel on Monday, following the conclusion of peace talks. Similarly, US crude oil prices also fell 4.8 percent to around $81 a barrel.
The price of crude oil had previously risen to $120 per barrel due to the war in the West Asian country.
Investors are excited by the prospect of the lifting of US sanctions on Iran and the addition of millions of barrels of oil to the market daily, international media reported.
Stock markets in the Asia-Pacific region have rallied amid expectations that falling oil prices will provide relief to central banks around the world to control inflation, international media reported.
A drop in fuel prices in the international market has an impact on local markets.
In Nepal, Indian Oil Corporation (IOC) sends new prices every 15 days. Nepal Oil Corporation adjusts the prices in the local market according to the reduced prices sent by IOC. The corporation purchases refined oil from IOC.
Corporation spokesperson Manoj Kumar Thakur informed that the impact of the reduction in crude oil prices will be visible in Nepal within two weeks. According to him, IOC sends new prices every 15 days, and even if the price decreases accordingly, the price also decreases in Nepal within 15 to 1 month. The Corporation determines the price in the local market by adding taxes and transportation costs under various headings.
For a long time, the increase in fuel prices in the global market has had an impact on the local market. The increase in fuel prices has also affected development and construction work. The increase in the prices of most goods, from daily necessities, has affected consumers. Even if fuel prices decrease, consumers will get relief.
Currently, in the Nepali market, petroleum products, petrol are priced at Rs 217 per liter, diesel and kerosene at Rs 225 per liter, and aviation fuel at Rs 269 per liter. Similarly, the price of LPG gas for cooking is Rs 2,160 per cylinder.
