KATHMANDU/POKHARA – The escalating conflict in the Middle East has moved far beyond the headlines, hitting the pockets of everyday Nepalis and paralyzing the country’s vital tourism sector. On March 15, the Nepal Oil Corporation (NOC) announced a major hike in petroleum prices, citing the surge in global crude oil rates driven by the hostilities involving the U.S., Israel, and Iran.
Fuel Prices Reach New Highs
Effective from midnight on Sunday, petrol prices across Nepal surged by Rs 15 per liter, while diesel and kerosene saw an increase of Rs 10 per liter. In Kathmandu and Pokhara, petrol is now priced at Rs 172 per liter and diesel at Rs 152.
The NOC stated that the adjustment was unavoidable following a new price list from the Indian Oil Corporation, which reflects the volatility of a global market currently rattled by disruptions in the Strait of Hormuz. For many Nepalis, this isn't just a number at the pump—it is the start of a nationwide inflationary wave that is expected to drive up the cost of public transport, groceries, and essential goods in the coming weeks.
Pokhara’s "Golden Season" Turns Quiet
While the cost of living climbs, the source of income for thousands is drying up. In Pokhara, the heart of Nepal’s tourism, the typically bustling spring peak season has been replaced by an eerie silence. Tourism entrepreneurs report that nearly 50 percent of foreign bookings have been canceled.
The Annapurna Conservation Area, which should be teeming with trekkers in the months of Chaitra and Baisakh, is seeing unusually low activity. Industry stakeholders point to two major factors:
Airspace Closures: Major transit hubs in Qatar and the UAE have faced disruptions, forcing airlines to cancel or reroute over 75 flights linked to Nepal in recent days.
Skyrocketing Airfares: Travelers from Europe and North America—the backbone of the spring season—are facing doubled airfares and security concerns, leading many to postpone their trips indefinitely.
A Nationwide Economic Squeeze
The crisis is not limited to the trails. Economists warn that the double blow of rising fuel costs and declining tourism arrivals could significantly hinder Nepal’s economic growth for 2026. With over 40 percent of remittances originating from the Middle East, there is also growing anxiety about the safety and job security of millions of Nepali migrant workers currently in the Gulf.
As the government considers a strategic shift toward Southeast Asian markets to fill the tourism void, the immediate reality for many remains a struggle. From the quiet guesthouses of Lakeside to the crowded markets of Kalimati, the message is clear: the conflict thousands of miles away has landed squarely on Nepal's doorstep.
