NOC likely to cut fuel prices today

Kathmandu, July 18

Nepal Oil Corporation is likely to cut fuel prices on Tuesday, as it will be able to generate more profit based on the new price list of fuel received from Indian Oil Corporation today.

At the existing price, the government entity will be able to generate a profit of seven rupees on sale of each litre of petrol and around Rs 1.50 per litre of diesel, based on the new price list of IOC.

NOC receives new price list on a fortnightly basis as per the international market rate from its sole supplier — IOC. NOC has been earning profit on all petroleum products, including liquefied petroleum gas.

At the existing price, NOC has been generating a profit of Rs 6.61 on sale of each litre of petrol, Rs 0.62 on each litre of diesel and Rs 16.72 per litre of kerosene. The state entity also makes a profit of Rs 13.64 and Rs 22.77 on sale of each litre of aviation turbine fuel for domestic and international flights, respectively.

NOC has also been making a profit of Rs 45.07 on sale of each litre of cooking gas.

According to NOC Spokesperson Mukunda Ghimire, with the fuel price remaining constant, the profit amount will rise to over Rs 400 million this fortnight from around Rs 350 million in the previous fortnight.

“We received the price list from IOC today, and we will decide on the price adjustment only tomorrow,” he said.

The state-owned petroleum company is under pressure to cut fuel prices, as it cleared its entire loan burden in the last fiscal. NOC had been passing on its loan and interest liabilities to consumers since long.

It cleared the entire loan worth Rs 36.86 billion over the last two fiscal years, giving NOC space to cut fuel prices.