Biratnagar, January 16:

Nepal Oil Corporation (NOC), three days ago, has hiked diesel prices to Rs 64.08 only for industries.

Most of the factories that are already reeling under heavy load shedding are planning to close down due to rise in diesel price by nearly Rs 10-a-litre.

NOC said the rise in price is necessary for smooth supply of diesel to industries. Due to regular load-shedding the industries use diesel generator. "The power generated from diesel after price rise costs Rs 22 to Rs 25 per unit," said Mahesh Jaju, MD of the Asian Thai Foods.

According to regional director of NOC, Pushkar Das, NOC’s selling price of diesel to petrol pumps is Rs 55.86 a litre. “The price is hiked to make smooth supply,” he defended the price hike.

Meanwhile, the industrialists protesting the NOC decision to raise diesel price said that NOC should have provided them diesel in concession rather than hiking price.

Managing director of Arati Strips Roshit Unnithan said that the industries that were facing a seven-hour load shedding have come under more pressure with the price hike.

Bhim Ghimire, a member of the Industries Association Morang said that NOC decision of hiking the price will only worsen the supply situation causing an artificial shortage and black marketeering in the market.