Kathmandu, April 7 -- With petroleum prices surging in recent weeks due to escalating tensions in West Asia, the government on Tuesday decided to slash taxes-customs duty and infrastructure tax-on fuel by 50 percent in a bid to keep the state-owned oil utility financially afloat.

However, the tax cut will not translate into relief for consumers, according to the Nepal Oil Corporation (NOC). Officials said the measure is intended primarily to offset mounting losses and ensure uninterrupted fuel supply.

"The tax waiver will help us manage losses and ease payments to the Indian Oil Corporation, but it will not bring down retail prices," said Nagendra Sah, deputy managing director of NOC. "At this point, the relief is marginal."

The govern...