KATHMANDU: Nepal Oil Corporation has increased prices of petrol, diesel, kerosene and aviation fuel effective from Saturday midnight.

The state-utility has increased the price of petrol by Rs 3 to Rs 113 per litre and Rs 3 on diesel and kerosene which will now cost Rs 95 per litre. Likewise, the price of Aviation Turbine Fuel has also increased by Rs 5 per litre for domestic carriers and USD 75 per 1000 litres for International airlines. The price of cooking gas remains unchanged.

"With this change, the total projected fortnightly loss of NOC stands at Rs 180.62 million," NOC Spokesperson Birendra Goit said, "However, the corporation will bear a loss of Rs 139.39 per cylinder of cooking gas. The loss on sale of LPG cylinders is proposed to be absorbed through price stabilisation fund."

After the price hike, the cross-border difference between petrol and diesel prices in Nepal and India stand at Rs 22.72 per litre in petrol and Rs 24.95 per litre in Diesel raising fears of fuel smuggling from bordering regions of Nepal to India.