NOC hikes price of all petroleum products

Kathmandu, December 8

Nepal Oil Corporation (NOC) has increased the price of all petroleum products effective from Saturday. While the state-owned fuel supplier has increased the price of petrol and diesel by two rupees per litre and three rupees per litre respectively, price of cooking gas has been hiked by Rs 25 a cylinder.

Similarly, NOC has increased price of kerosene by three rupees per litre. While aviation turbine fuel (ATF) price for domestic airlines has been increased by five rupees a litre, ATF price for international carriers has been increased by $100 per kilolitre.

With this fresh adjustment in fuel price, diesel and kerosene will cost Rs 87 per litre each. While petrol will cost Rs 100 per litre following the adjustment, LPG will cost Rs 1,350 per cylinder. Likewise, ATF for domestic airline companies and foreign airline companies will now cost Rs 87 per litre and $850 per kilolitre, respectively.

As per NOC, new adjustment in price was made on basis of fuel rates of Indian Oil Corporation — sole supplier of petroleum products to NOC.  “Fuel price has been increased following the global increment in oil price,” informed Sushil Bhattarai, acting deputy managing director of NOC.

With this adjustment in fuel price, NOC’s projected monthly loss has come down to Rs 420 million from Rs one billion monthly loss it had incurred last month.

The new adjustment in fuel price means that NOC will enjoy profit on petrol, kerosene and ATF. However, NOC will still incur losses of Rs 226.75 per LPG cylinder and Rs 2.74 per litre on diesel.