Surging fuel prices are squeezing Nepal’s middle class
Summary
Fuel prices in Nepal have surged sharply due to the West Asian conflict, significantly impacting the middle class, especially two-wheeler users and public transport riders. Despite strong electric vehicle adoption among four-wheelers, two-wheelers lag behind due to range anxiety and practical concerns.
Key Points
- Fuel prices in Nepal have increased substantially since the West Asian conflict began, with petrol rising from Rs157 to Rs217 per litre and diesel from Rs142 to Rs225.
- The price hike has disproportionately affected middle-class commuters relying on two-wheelers and public transportation, with public transport fares increased by 16.71%.
- Electric vehicles account for 71% of new four-wheeler sales in Nepal but only about 6% of two-wheeler sales due to concerns like range anxiety.
- Nepal ranks second globally after Norway in electric four-wheeler adoption, but two-wheeler electric vehicle uptake remains low despite availability and domestic clean energy capacity.
