Automobiles, Opinion

Petrol Rate Highest till Date – Is it time to shift to Electric Vehicle?

Written by Barsha Bishwakarma · 1 min read >

The government announced a massive hike in the prices of petroleum products effective from 20th June 2022. This is the highest selling price of petroleum to date in Nepal. The high price of petrol, diesel, kerosene, and LPG is not a new thing in Nepal. But this time it has reached its highest peak. The price of petrol has increased by Rs.21/-, diesel by Rs.27/-, and air-fuel by Rs.19/-.

Petrol Price Today – Rs.199/- per liter

Diesel Price Today- Rs.192/- per liter

Air-fuel price (Internal) – Rs.185/-per liter

Air-fuel price (International) – USD 1645 per Kilo liter

Why are Petroleum Products Expensive in Nepal?

Petroleum product itself is an expensive commodity not only in Nepal but the whole world except a few countries. Crude petroleum is a non-renewable natural resource of energy. There are a limited number of countries where petroleum extraction is done. For instance, Iran, Saudi Arabia, Kuwait, UAE, Venezuela, Iraq, and a few others.

Moreover, these countries come under an umbrella organization known as OPEC, the Organization of Petroleum Extracting Countries. The price fluctuation is mostly controlled by OPEC. So, one reason is definitely the global inflation and economic factors for petroleum price hikes in Nepal.

Secondly, Nepal imports petrol from India, and India imports it from Iran (mostly). Not to forget, petrol extraction itself is a costly thing. The crude oil extraction costs around $25 per barrel. This crude oil is then imported to India from Iran. The logistics and import cost around $80 per barrel for India to import crude oil from Iran. India then refines it to produce petrol, diesel, and air-fuel. And, we know, Nepal imports refined petroleum only as we don’t have refineries. Thus, the buying cost for the Nepal Government increases while importing petroleum in Nepal.

Following, another major reason behind the hill-climbing rate of petroleum is the Government-Imposed-Tax. The Nepalese public has to pay almost double the actual price of petroleum in Nepal. The main Organization, Nepal Oil Corporation (NOC) monitors and circulates the price value for fuel in Nepal. The excessive tax has led to a massive hike in the cost of petrol and diesel in Nepal.

At present, the Russia-Ukraine War has also affected the international fuel market, and the prices are adjusted in line with the international market. 

Is it Time to Shift to Electric Vehicles?

Yes. This is the prime time that we shift to electric vehicles. Undoubtedly, non-renewable petroleum will finish one day. Thus, scientists and researchers are continuously working to find sustainable alternative sources of energy. Electric energy is one of them. In the case of Nepal, we are rich in water resources. Due to this, Nepal has great potential for producing hydroelectricity.

The government and authorities should try to emphasize the benefits of using electric vehicles. Decreasing the number of fuel-driven vehicles will definitely decrease the number of petroleum imports in Nepal. This will help our country to be self-sufficient and grow the national economy as well.

Benefits of Electric Vehicles

Electric Vehicles are one step ahead toward a green and clean environment. Less carbon emission, less noise, eco-friendly, affordable, and most importantly NO FUEL REQUIRED are the major benefits of electric vehicles. Find here everything in details about electric vehicles:

Written by Barsha Bishwakarma
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