KATHMANDU, FEBRUARY 7

The Nepal Oil Corporation has raised prices of petroleum products with effect from today.

In a statement dated yesterday and publicised today, the NOC stated that the fuel prices had been hiked in the domestic market, keeping in mind the estimated losses over the next 15 days after the Indian Oil Corporation also raised prices of petroleum products on February 1.

As per the revised list sent by the IOC, the price of petrol has been increased by Rs 8.01 per litre, diesel by Rs 9.75 per litre, kerosene by Rs 4.61 per litre, and aviation fuel by Rs 7.80 per litre. But NOC has raised petrol and diesel prices by Rs 3 only. Following the revision, petrol now costs Rs 178 per litre, while diesel and kerosene cost Rs 175 a litre each in the domestic market. However, prices of LPG and aviation fuel have not been changed. At present, the price of aviation fuel for domestic airlines and international airlines has been fixed at Rs 170 per litre and $1.420 a litre, respectively, while an LPG cylinder costs Rs 1,800.

According to NOC, the price of crude or processed oil in the international market is very volatile at present and that the corporation has outstanding dues which are yet to be paid to the Nepal government and the IOC.

Thus, the corporation had no option but to hike fuel prices to ensure uninterrupted fuel supply in the market, it has said in the statement.

Despite the increase in fuel prices in the domestic market, the NOC has clarified that it has outstanding dues to the tune of Rs 16.30 billion to the Nepal government in loans and to the IOC for fuel purchase.

According to international news agencies, oil prices rose yesterday, buoyed by supply concerns, but remained near three-week low on fears that slower growth in major economies could curb demand.

A version of this article appears in the print on February 8, 2023, of The Himalayan Times.