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In the context of Nepal. We have the privilege of getting kerosene oil at the cheapest rate. The kerosene oil used to cost around 27 or 28 NRS. The diesel used to cost 48 NRS or somewhere around forty. Now the cost of kerosene oil has hiked up to the same level as that of diesel. This has a cause. Smart people started using kerosene in place of diesel because kerosene oil was cheaper. The vehicles which are run by diesel could use kerosene because of its cost effectiveness. What they just needed was add some mobil a lubricant in the kerosene and this mixture would completely work like diesel. In this way the consumption of kerosene hiked up where as the consumption of diesel slowly moved downward. To maintain the equilibrium in the supply of the demand of kerosene and diesel the price of kerosene had to be raised. This has caused a very bad impact on the people living under par and who still uses kerosene oil for daily needs. And the government had no other option rather than to raise the kerosene oil's price and bring it to the diesel's price.