KATHMANDU, April 2: Nepal Oil Corporation (NOC) has increased the prices of petrol, diesel and kerosene by Rs 15 per liter each, citing the ongoing war in the Middle East and soaring international fuel prices.
The new price list will take effect from midnight Thursday.
The state-owned oil monopoly said it was forced to raise prices due to continuously rising petroleum product prices in the international market and a sharp increase in the purchase price charged by Indian Oil Corporation (IOC). According to NOC, the automatic pricing system could not absorb the pressure, necessitating the adjustment.
NOC hikes prices of petrol, diesel and kerosene by Rs 5 per lit...
NOC claimed the price hike was unavoidable as mounting losses threatened timely payments to IOC, which in turn could disrupt the country's fuel supply chain.
Based on prices received from IOC on March 16 and March 31, NOC had incurred a biweekly loss of Rs 13.21 billion. The corporation said it had drawn from the Price Stabilization Fund and increased prices by only Rs 15 per liter in consideration of consumer interests.
Even after the adjustment, however, NOC remains in the red. The corporation reported it is still incurring a loss of Rs 34.36 per liter on petrol, Rs 120.54 per liter on diesel, and Rs 416.37 per cylinder on LP gas.
NOC said the new prices will result in a biweekly loss of Rs 11.71 billion. The corporation has urged consumers to exercise fuel economy, understanding the difficult situation in the international market.
