The price of crude oil has started to increase in the international market after the US and Israel launched a joint attack on Iran. But Nepal Oil Corporation has said that it will not have an immediate impact in Nepal. While it is expected that the price of crude oil will increase in Nepal as well after the price of crude oil starts to increase in the international market, the corporation's Managing Director Chandika Bhatta has also urged the general public not to form opinions without understanding the official information.

Although there were lines at some petrol pumps on Sunday, he said that the supply of petroleum will be smooth from Monday. 'We have sufficient petroleum stocks,' he said, 'We will continue to distribute petroleum even during Holi and election holidays. The general public should not keep unnecessary stocks, there will be no problem.'

When the price of petroleum products increases in the international market, it will automatically increase in Nepal too. But there will be no immediate shortage of petroleum products. Because there is a bilateral agreement with India on this matter.

Trade expert Ravi Shankar Sainju said that there will be no immediate impact on the price of petroleum products. ‘India has already sent the oil price for March 15 on Saturday, and based on that, it has also been decided in Nepal,’ he said, ‘The price of petroleum products is decided every 15 days. So the price may increase in the coming days.’

Nepal imports 100 percent of its petroleum products from India. India imports oil from the Gulf countries. Sainju understands that Nepal will be hit hard when the price of oil in the world market is $100 per barrel. On February 28, the Indian Oil Corporation increased petrol by Rs 2.9, diesel by Rs 2.47 and gas by Rs 18.58 per cylinder. But the Nepal Oil Corporation has not increased the price until March 15.

Nagendra Shah, Deputy Managing Director of the Corporation, said that as the consumption of petroleum products is increasing during the elections, the corporation is also increasing imports. ‘The demand for petroleum products has increased by 5 to 10 percent due to the elections,’ he said, ‘Out of the 2 million liters consumed, 2.2 million are now consumed, and out of the 4 million liters consumed by diesel, 45 to 4.6 million liters are now being consumed.’ Shah said that imports are continuing daily and the Corporation will continue to distribute petroleum even during Holi and the elections. He also said that the Corporation has sufficient stock for 15 days.

After the US-Israeli war against Iran, a member of OPEC Plus (Group of Oil Exporting Countries and its allies), and Tehran’s retaliation, oil transportation in the Middle East has been disrupted. The OPEC Plus meeting on Sunday discussed the option of producing 137,000 to 548,000 barrels of crude oil per day. After the discussion, it was agreed to increase oil production by 26,000 barrels per day from next April. Production increases have been suspended for January to March 2026 due to seasonal weakness.

The meeting was attended by Saudi Arabia, Russia, the UAE, Kazakhstan, Kuwait, Iraq, Algeria and Oman. OPEC Plus includes the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia. But most of the changes in production in recent years have been made by these eight members. The eight member countries increased their production quotas by 2.9 million barrels per day between April and December 2025. That is only 3 percent of global market demand.

Ship owners have been warned that the Strait of Hormuz is closed to shipping from Iran, which has halted Middle Eastern oil, gas and other shipments since Saturday. The Strait of Hormuz is a waterway between Iran and Oman. It connects the Gulf to the Arabian Sea. Tankers carrying 20 percent of the world's total oil consumption in a day also use this route, as do cargo from producers such as Saudi Arabia, Iraq, Iran, the UAE, Kuwait, and Qatar.

According to Reuters, at least 150 tankers carrying crude oil and liquefied natural gas were stuck in the open Gulf waters outside the Strait of Hormuz as of Sunday. Dozens of tankers are off the coast of Qatar.

The price of crude oil rose to $73 per barrel on Friday in the international market. Which is the highest since last July. On Sunday, it was also traded at around $80 per barrel, according to Reuters news. It is estimated that the price of crude oil could reach $100 per barrel due to a war with Iran. Oil prices are expected to rise when trading begins on Monday. Analysts say the impact of OPEC's output hike on the market will be limited because countries other than Saudi Arabia lack real production capacity.

Asian governments and refiners are also evaluating alternative shipping routes and supplies, along with oil stocks, after the Iran conflict disrupted crude and gas shipments through the vital Strait of Hormuz, Reuters reported. Any disruption to Middle East oil supplies would have the biggest impact on Asia. Asia buys two-thirds of its crude from the Gulf region. Half of the world's top importer China's supplies and 90 percent of Japan's supplies also come from the Middle East.

Indian refiners have started looking for alternative suppliers, Reuters reported. Indian state-run refiners have 20 days' worth of crude and LPG gas in stock, which would be sufficient if conditions normalize in the coming days, Reuters reported. If the Iran-Israel war drags on for a long time, India will face volatility in oil prices and a wider macroeconomic impact, the Economic Times has reported.

About 20 percent of the world's petroleum liquids and 20 percent of liquefied natural gas are transported through the Strait of Hormuz. Since Iran and many Middle Eastern energy producers are located around it, any escalation in regional conflict could disrupt energy transport through this corridor.