Big mandate, bigger bills

Rising prices are becoming a daily reality for consumers across Nepal, with the cost of transport, fuel, and essential goods climbing steadily over the past six months. Wherever you go, people are talking about the rising cost of goods and services. The issue has become so pressing that it is now discussed everywhere.

A few days ago, I used inDrive after about a month. It usually costs Rs 130–140 to travel from my office to home, but this time I paid Rs 210. When I spoke to the rider, he said, “Because of the high petrol cost, we have to raise prices to maintain our earnings.” 

Public transport fares within the Kathmandu Valley have also risen significantly in recent days. Fares increased by 25.96 percent, effective from April 11. The Department of Transport Management has applied this change not only to urban transport but also to long-distance passenger and service-oriented vehicles. Long-distance bus fares have increased by 16.71 percent.

Similarly, service vehicle charges have gone up, with goods carriers rising by 15.75 percent on Tarai routes and 21.68 percent on hilly roads, reflecting the broader impact of rising fuel costs. The situation is tied not only to domestic factors but also to the tensions in the Middle East involving Iran, Israel, and the United States. Concerns over disruptions in oil supply, especially through the strategically vital Strait of Hormuz, have driven up fuel prices, affecting import-dependent countries like Nepal.

People across Nepal have also struggled to access LPG gas, with many shifting to induction cooking due to shortages. The government has even implemented weekend holidays as a temporary measure to cope with fuel shortages and rising prices. These responses reflect a broader pattern of short-term adjustments rather than long-term solutions. Markets are becoming increasingly expensive, and many people can no longer afford basic goods at previous prices. Inflation is now visible across nearly every sector.

The Asian Development Bank warned last month that prolonged disruptions in energy markets could raise inflation in developing Asia and the Pacific by 3.2 percent and reduce economic growth in the region by 1.3 percent by 2026–2027.

“I travel daily from Kirtipur to Ratnapark for my graphic design internship, using my own vehicle,” said 25-year-old Rojesh Maharjan. “Earlier, petrol used to cost around Rs 100–150, but now it has reached around Rs 200.” “As an intern, I don’t earn much, and I spend around Rs 250 per day on fuel. It’s not enough. I often skip lunch to manage expenses,” he added. “Because of rising costs, I’ve started considering public transport when money is tight.”

“If prices continue to rise, salaries should increase accordingly. Only then can people cope,” Maharjan said.

Fuel prices have surged sharply between mid-March and mid-April, making the market increasingly unaffordable. Petrol, which cost Rs 157 per litre just a month ago, has risen by Rs 62 to Rs 219. Diesel and kerosene prices have also climbed significantly, from Rs 142 to Rs 237 per litre.

The impact is visible across sectors. LPG has increased by Rs 100, reaching Rs 2,010 per cylinder. Domestic aviation fuel prices have more than doubled, rising from Rs 127 to Rs 262 per litre, while international aviation fuel has jumped from $966 to $1,716 per kilolitre.

“Inflation is being driven by multiple factors, including ongoing conflict in the Middle East and supply chain disruptions,” said an official from the Department of Commerce, Supplies and Consumer Protection. “We seized around 6,300 LPG cylinders from dealers last month and redistributed them. Since then, such cases have declined,” the official added. “If we receive complaints of hoarding or black marketing, we will take action.”

Many people are aware of the broader causes. Rukesh Shah, 34, from Rautahat and now living in Bhaktapur, works collecting scrap materials.

“This situation has been created by tensions between Israel, the US, and Iran,” he said. “If India faces difficulties in securing goods, Nepal is in even greater trouble.” “Our income has remained the same, and as daily wage workers, we are sometimes paid even less. This directly affects our daily lives,” he said, urging the government to act.

Parbati Sah, a shopkeeper, said she understands the reasons behind rising prices. “Dealers tell us costs have increased, and they cannot sell at a loss,” she said. “In most items, prices have risen by around 23 to 30 percent.” She added that the situation has strained customer trust. “Customers often don’t believe us when we say prices have gone up. Sometimes we are forced to sell at lower prices and bear the loss.”

Her husband, who helps run the stall, said rising costs have forced them to adjust prices. “Earlier, we sold samosas for Rs 20; now they are Rs 25. Other items have also increased,” he said. “This has affected our small business.” He added that inflation is affecting more than just goods. “Room and shop rents have also increased, making it even harder to manage.”

A customer at the shop offered a different perspective: “Inflation is happening because of corruption and political rivalries among leaders,” he said, adding that this is how the situation appears from a consumer’s point of view. The cost of essential goods has also risen. Sunflower oil has increased by Rs 40 to Rs 295, while mustard oil has gone up to Rs 375 from Rs 325.

According to the Department of Commerce, the price of General Sona Mansuli rice in the Kathmandu Valley has increased by Rs 36, reaching Rs 95 per kg from Rs 59. Steamed Jeera rice has risen to Rs 102 per kg, while basmati rice now costs Rs 185 per kg. Other staples have also become more expensive. Maize flour now costs Rs 127 per kg, while wheat flour has risen to Rs 60 per kg.

Even water prices have increased in some areas. The Federation of Nepal Water Industries recently stated that shortages of raw materials—such as plastic bottles, caps, and packaging materials—have driven up production costs.

“The prices of raw materials used in the water industry have increased by around 40 percent,” the federation said. “This is not profit-driven but a result of rising production and transportation costs.” As a result, bottled mineral water in parts of Kathmandu now costs Rs 25–30, up from Rs 20.

As prices continue to rise across fuel, transport, and essential goods, the burden is falling most heavily on ordinary consumers. From commuters and daily wage workers to small business owners, many are being forced to cut expenses and adjust their lifestyles just to cope.

While global factors such as geopolitical tensions and supply disruptions play a role, public concern is growing over the lack of immediate relief and long-term solutions. Inflation is no longer just an economic indicator—it has become a lived reality shaping everyday decisions and survival.

Federation of Nepal Water Industries stated that raw material prices, including plastic bottles, caps, jars, and wrapping rolls, have risen by around 40 percent. “This is not a profit-oriented decision, but a forced situation,” the federation said. In several parts of Kathmandu, mineral water now sells for Rs 25–30, up from Rs 20.

As prices continue to climb, the burden falls hardest on ordinary people. Commuters, daily wage workers, small business owners are all forced to cut back and adjust just to get by. Global factors like geopolitical tensions and supply chain disruptions are significant contributors, but the public's growing frustration is with the absence of immediate relief and credible long-term solutions. Inflation is no longer just an economic indicator. It has become a lived reality, shaping everyday decisions and survival across Nepal.

Adverse weather affects flights

Flights have been affected since this afternoon due to adverse weather conditions. 

General Manager at the Tribhuvan International Airport (TIA) Teknath Sitaula said that domestic air services have been affected due to persisting adverse weather in various parts of the country, including Kathmandu.

Flights to and from Simara, Pokhara, Biratnagar and Bhairahawa are being delayed because of unfavourable weather, he shared. 

According to the TIA office, some aircraft arriving at the international terminal have been placed on hold due to adverse weather conditions. 

The office has stated that all domestic flights will resume once the weather improves.

 

China to provide Rs 11 billion for ring road expansion project

The Chinese government is to provide Rs 11 billion in grants for the implementation of the Ring Road Expansion (Second Phase). 

According to the Ministry of Physical Infrastructure, Transport and Urban Development, Minister of Physical Infrastructure, Transport and Urban Development Sunil Lamsal and Ambassador of China to Nepal Zhang Maoming signed the agreement today. 

In line with the agreement, the Ring Road will now be extended from Kalanki to Basundhara. 

In the first phase, it has been extended from Koteshwor to Kalanki.

On that occasion, Minister Lamsal said that no problems would be allowed in project implementation and, if any arose, immediate facilitation would be provided to resolve them.

He mentioned that the construction of roads connecting the north and south is a government priority and expressed confidence that China will further increase its investment in the country's infrastructure development.

Ambassador Zhang stated that many Chinese investors are willing to come here if an environment conducive for investment is created.

 

 

MCA-Nepal kicks off upgradition of 40km Dhan Khola to Lamahi section

Millennium Challenge Account Nepal (MCA-Nepal) today launched the upgrade of the 40km Dhan Khola–Lamahi section along the East-West Highway,  a key project aimed at enhancing transportation and improving road conditions across Nepal.

For the first in Nepal, the upgrade will apply Full Depth Reclamation and Superpave as modern construction methods that offer important gains in quality, durability, and sustainability. 

The project will also widen the road to 12 meters, with a 7-meter carriageway and 2.5-meter shoulders on both sides.

Addressing the event, Chet Narayan Acharya, the Chief Minister of Lumbini Province, welcomed the use of modern technologies like FDR and Superpave, which will ensure better quality and longer-lasting roads. 

“This is a major step forward for our province and the people who rely on this highway every day. The upgrading of this road section will not only make travel safer and more reliable, but also open up new opportunities for local businesspeople, farmers, and entrepreneurs,” he expressed, reads a statement issued by the MCA-Nepal. 

Similarly, Scott Urbon, the Charge d'Affaires at the US Embassy, stated, “Today’s launch of the Dhan Khola–Lamahi road upgrade marks an important milestone in the partnership between the United States and Nepal. Through the MCC Nepal Compact, we are investing in high-quality, durable infrastructure that will lower transportation costs, improve safety, and connect communities to markets and opportunities.” He further noted, “This project reflects our trust in Nepal’s future and our joint dedication to sustainable economic growth.”

Speaking at the event, Sushil Babu Dhakal, Joint Secretary at the Ministry of Physical Infrastructure and Transportation and MCA-Nepal Board Member, expressed, “As a Board member, I am pleased to highlight that MCA-Nepal’s investments are designed to complement the Government of Nepal’s plans and programs. This collaboration reflects our shared commitment to building resilient infrastructure and expanding economic opportunities for our communities. I appreciate the efforts of all involved and look forward to the timely completion of this important project."

Sanjay Poudyal, the MCC Deputy Resident Country Director, remarked that this milestone reflects MCC’s commitment to supporting Nepal in building resilient, cost-effective infrastructure using advanced technologies that ensure long-term performance, according to the statement. 

Khagda Bahadur Bisht, the MCA-Nepal Executive Director, said, “The commencement of works on the Dhan Khola–Lamahi section marks a significant step in implementing the Road Maintenance Project under the MCC Nepal Compact. MCA-Nepal remains committed to delivering this project efficiently, transparently, and to the highest quality standards.” He added, “I would also like to recognize the continued support from the Government of Nepal, Millennium Challenge Corporation (MCC) and our key stakeholders—the Ministry of Physical Infrastructure and Transport, the Department of Roads, and the MCA-Nepal Board.”