With the decision, consumers in the Kathmandu Valley would need to pay Rs 123 for a liter of petrol and Rs 99 for a liter of diesel and kerosene each. Prices of aviation fuel and liquefied petroleum gas (LPG) have been left untouched.[break]
“The NOC board meeting on late Friday evening took the price revision decisions,” said Suresh Kumar Agrawal, acting managing director of the corporation.
Agrawal said Friday´s decision has enabled the NOC to lower its loss on diesel to Rs 1.04 per liter. It lowered its profits on petrol to Rs 10.07 per liter, but also widened its profits on kerosene to Rs 12.87 per liter.
Following the decision, NOC said it is now set to earn a profit of Rs 171.2 million from petrol, Rs 51.4 million from kerosene and Rs 277.9 million from aviation fuel business in the month of December. Its loss from diesel too is set to drop to Rs 67.7 million.
“Still our calculation suggests NOC will suffer a net loss of Rs 355 million in December,” said Agrawal. He attributed the loss to soaring import prices of LPG.
According to NOC, at the present retail rates, it is suffering loss of Rs 656.62 per cylinder (14.2 kgs) of LPG. Such price gap is set to inflict NOC a net monthly loss of Rs 787.9 million from LPG business alone.
Apart from the price revision, NOC on Friday also increased commission (profit margin) to the petrol pump operators.
“The board has decided to provide additional commission of Rs 500 per kiloliter of fuel they sell in the market,” a source said.
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