Fuel and Power Prices Fall 3.1% Despite Global Energy Volatility

The Wholesale Price Index (WPI) for July–August 2025/26 shows that Nepal’s Fuel and Power category (8.76% weight) recorded a 3.10% decline compared to June–July 2025, despite ongoing volatility in global energy markets. The group’s index fell from 158.65 in July–August 2024/25 to 153.74 in July–August 2025/26, highlighting short-term relief in domestic wholesale energy costs.

Within the group, fuel prices dropped by 3.99% month-on-month, reflecting corrections in global oil prices and possible adjustments in domestic import pricing. This decline eased cost pressures for industries and transport, sectors that are heavily dependent on petroleum imports. On the other hand, electricity prices remained flat at 100.00, showing no change across the three fiscal years, largely due to Nepal’s reliance on hydropower and stable electricity tariffs.

The broader implication is that while global oil prices remain unpredictable due to geopolitical tensions and supply fluctuations, Nepal’s wholesale energy costs have temporarily eased. This provides short-term relief for businesses, transport operators, and consumers, but the volatility in global fuel markets means risks of renewed upward pressure remain.