Kathmandu, January 18

Nepal Oil Corporation (NOC) has slashed the prices of petrol, diesel and kerosene and aviation fuel today, effective from Tuesday.

A meeting of NOC top management today evening decided to reduce the price of petrol by five rupees per litre and that of diesel and kerosene by six rupees per litre, following the price revision in the international market. As per the revised rate, petrol will cost Rs 99 per litre.

Similarly, diesel and kerosene will cost Rs 75 each per litre.

According to Sushil Bhattarai, acting deputy managing director of NOC, price of aviation turbine fuel (ATF) for the domestic usage has been reduced heavily.

The price of ATF had sky-rocketed after NOC failed to bring fuel via land-route since the start of ongoing border blockade by agitating Madhes-based political parties in last week of September.

As NOC relied on the airlifted ATF to provide refuelling facility to the domestic airlines, it had set price of ATF at Rs 232.78 per litre.

With the supply of fuel starting to rise from all the check points with India, except Birgunj, NOC today decided to cut the price of ATF by Rs 67.90 per litre.

With this revision, domestic airlines will now get ATF at Rs 164.88 per litre from Tribhuvan International Airport (TIA).

Airline companies refilling at the airports of Bhairahawa, Nepalgunj and Biratnagar will be able to get ATF at Rs 118 per litre the same rate as before the prices were jacked up for refilling facility at TIA.

However, international airlines will be charged the earlier rate of Rs 232.78 per litre, according to NOC.

NOC has reviewed price of petroleum products for the first time after November 1, 2015 citing erratic supply from India and private vehicles were barred from refuelling facility.

Earlier, fuel prices used to be revised every fortnight as per the international market rates, after automatic pricing mechanism was implemented on September 29, 2014.

NOC has distributed fuel to private vehicles three times after barring them refilling facility on October 7.

NOC has not revised the price of liquefied petroleum gas (LPG). NOC incurs loss of Rs 240 on sale of each LPG cylinder, according to Bhattarai.