Kathmandu, April 9 -- Travelling via air got costlier last week. Now, the surface route has become historically most expensive.

With a steep hike in fuel prices, fares of public transport and cargo on inter-provincial routes have also risen sharply to all-time highs. All public transport, cargo and air fares are regulated in Nepal.

Higher fuel costs are feeding directly into inflation. Transport becomes more expensive, raising the cost of everything from food to construction materials. In Nepal, where difficult terrain already inflates logistical costs, even modest fuel price increases can have an outsized impact.

The state-owned Nepal Oil Corporation has hiked the price of petrol and diesel three times in less than a month, following ...