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World Economy
Apr 05, 2026

Nepal Moves to Two‑Day Week as Fuel Shortage Worsens Amid US‑Israel Conflict with Iran

AI Summary
Facing a severe fuel shortage linked to the US‑Israel war with Iran, Nepal’s government has reduced the work week to five days, extending the weekend to Saturday and Sunday. The measure aims to curb fuel consumption, protect a tourism‑dependent economy, and explore a shift toward electric vehicles.

Nepal’s cabinet approved a shift to a five‑day work week for government offices and schools, extending the weekend to both Saturday and Sunday in response to an escalating fuel crisis.

Government spokesperson Sasmit Pokharel told reporters that the decision was taken because “the present uncomfortable situation caused by fuel supply” necessitates closing public institutions for two days each week.

Previously, civil servants enjoyed only a single day off on Saturday; offices will now operate 9 a.m. to 5 p.m., Monday through Friday. Pokharel added that the government is also examining legal avenues to convert petrol and diesel vehicles to electric power, though details remain pending.

Nepal, a landlocked country of roughly 30 million people, imports virtually all of its fossil fuels from India, leaving it highly vulnerable to international price shocks. The ongoing US‑Israel war with Iran has sharply curtailed global oil supplies, causing Nepal’s aviation fuel prices to almost double in a single day.

The state‑owned Nepal Oil Corp reported heavy losses on petroleum products despite modest price hikes, prompting authorities to sell half‑filled cooking‑gas cylinders last month to deter hoarding and panic buying.

Tourism, a cornerstone of Nepal’s economy, faces a new threat as airlines raise airfares following the steep rise in aviation fuel costs. Higher travel expenses could dampen inbound visitor numbers, compounding economic pressures.

The fuel crunch stems from the broader Middle‑East turmoil that intensified after the United States and Israel launched a joint offensive against Iran on 28 February. Tehran’s retaliatory drone and missile strikes across the region have disrupted global markets and aviation, amplifying the scarcity of fuel supplies that ripple to landlocked neighbours like Nepal.

By shortening the work week, the Nepali government hopes to reduce non‑essential fuel consumption, ease pressure on already strained energy imports, and buy time for longer‑term solutions such as electrification of transport.