Rising fuel costs drive sharp fare hikes, threatening growth and household budgets
Summary
Fuel price hikes in Nepal have led to historic increases in public transport and cargo fares, causing a surge in inflation and threatening economic growth and household budgets.
Key Points
- Nepal Oil Corporation raised petrol and diesel prices multiple times recently, with diesel jumping 31% since February.
- Transport fares were increased by up to 21.68% to reflect the higher fuel costs, affecting both passengers and cargo carriers.
- The World Bank projects Nepal's economic growth to slow to 2.3% in fiscal year 2025-26 due to these pressures and global conflicts.
- Rising transport costs are expected to push inflation up significantly, disproportionately affecting low- and middle-income households.
