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Global fuel shock sparks EV rush among Nepalis

by Agence France-Presse - AFP

KATHMANDU, Nepal May 03, 2026 - 11:13 am GMT+3
This photograph shows passengers riding an electric inDrive taxi along a street, Kathmandu, Nepal, April 29, 2026. (AFP Photo)
This photograph shows passengers riding an electric inDrive taxi along a street, Kathmandu, Nepal, April 29, 2026. (AFP Photo)
by Agence France-Presse - AFP May 03, 2026 11:13 am

As the Middle East conflict rattles global fuel markets, more drivers in Nepal are switching to electric vehicles, with rising demand putting pressure on dealerships.

Electric microbus driver Purushottam Adhikari said he was now shuttling more passengers along the 300-kilometer (186-mile) journey between his town in Chitwan district and the capital Kathmandu.

"My profession is not affected (by the conflict)," said the 48-year-old, who drives his 18-seater Chinese-made e-van along Nepal's highways daily. "In fact, more people are choosing EVs."

Soaring global oil prices and fuel supply disruption since Iran effectively closed the Strait of Hormuz have led to long lines at gas stations in countries like Bangladesh and Pakistan, but Nepal has largely avoided the worst of the crisis.

"One of the main reasons is the increased penetration of electric vehicles on Nepal's roads," alternative energy expert Govind Raj Pokharel told Agence France-Presse (AFP).

The country of 30 million people has an estimated 50,000 EVs, still a small fraction of the total 6.2 million motor vehicles, but a figure officials expect would keep increasing.

The price of petrol in Nepal, which imports all of its gasoline, has nearly doubled since the war began in late February with U.S.-Israeli strikes on Iran.

While transport fares have gone up, Adhikari told AFP that his prices remain unchanged at 700 rupees ($4.60) for a one-way trip in his Joylong A6, which in turn costs $8 for a full recharge.

A full tank for a similar diesel vehicle would have cost "more than $66," he said.

'Comfortable and cheap'

An expanding network of charging stations along major highways has made long-distance electric travel increasingly viable.

Boarding Adhikari's van, 20-year-old Susmita Bishowkarma said she prefers to travel in EVs because they are "environmentally friendly... comfortable and comparatively cheap."

Buoyed by a surge in hydropower generation and a greener electric grid than neighboring India and Bangladesh, Nepal has emerged as one of the world's fastest adopters of EVs.

The Himalayan nation imported more than 13,500 EVs between mid-2024 and mid-2025, double that of petrol vehicles and a sharp rise from just seven a decade ago, government data shows.

Fume-free taxis and cars manufactured in China are a common sight in Kathmandu, with traffic officials estimating that up to 60 percent of microbuses entering the city from key routes are now electric.

Customs department spokesperson Kishor Bartaula said the number of EVs would rise further with hundreds awaiting clearance at Nepal's ports.

In line with its clean energy policy, the government is seeking to replace some 10,000 vehicles damaged during anti-corruption protests last year with EVs, finance ministry spokesman Amrit Lamsal told AFP.

Demand surge

Concerns that the ongoing conflict in the Middle East could prolong global fuel uncertainty are also influencing consumer behavior.

Shraban Bhattari, 49, who recently bought a BYD Atto-2, said the Chinese-made car is saving him daily fuel expenses.

"I no longer need to go to the petrol pump," he said.

In April, the government approved a legal framework to allow people to convert their petrol and diesel vehicles into electric ones, known as "retrofitting."

But EV dealers told AFP they were struggling to meet demand.

"It is getting challenging to meet the demand," said Ritima Pandey, customer relations officer at Venture Motors.

"As the price of diesel has gone up, many people are coming to trade in fuel vehicles for EV vans."

Schools and colleges are also exploring electric fleet purchases, dealer Dinesh Raj Pandeya said, signalling a shift beyond individual commuters.

Energy expert Pokharel urged policymakers to build on the momentum by encouraging domestic EV manufacturing and assembly.

"This will give us a long-term solution," he said.

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  • Last Update: May 03, 2026 1:04 pm
    KEYWORDS
    automotive market electric vehicle market fuel prices energy costs nepal evs
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