NOC raises fuel prices – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATHMANDU, MAY 14

The Nepal Oil Corporation has raised the price of petroleum products with effect from Sunday.

In issuing a notice late this evening, the NOC said the company had suffered heavy losses in the import of petroleum products and had decided to raise the prices of petrol, diesel and kerosene by Rs 10 per litre. each.

Following the overhaul, petrol will cost Rs 170 per litre, while diesel and kerosene will cost Rs 153 per liter each. However, the prices of LPG and aviation fuel have not been changed.

According to NOC, the company is currently buying gasoline at Rs 184.36 per litre, diesel at Rs 184 per litre, kerosene at Rs 140 per litre, domestic aviation fuel at Rs 143.36 per litre, international aviation fuel at Rs 123.78 per liter and LPG. at Rs 2,650.18 per liter from the Indian Oil Corporation.

Despite rising fuel prices in the domestic market, the NOC said it will still face losses of Rs 14.36 per liter of petrol and Rs 31.44 per liter of diesel. While he will make a profit of Rs 12.64 per liter each on kerosene and domestic aviation fuel and Rs 64.69 per liter on international aviation fuel, he will suffer a loss of Rs 1,050.18 Rs per bottle of cooking gas.

The NOC is to pay 31 billion rupees to the IOC for the purchase of fuel by May 23. It was 12.49 billion rupees short to meet its full payment of 25 billion rupees on May 8. The NOC had speculated on a loss of 5.19 billion rupees over the next 15 days if prices were not revised.

Despite the revision, it will still suffer a loss of up to Rs 4.25 billion over the next fortnight, according to the notice.

Stating that the NOC is short of funds to buy fuel from the IOC, the company asked the government to either manage the funds or arrange for subsidized loans from financial institutions to meet its payment obligations.

A version of this article appears in the May 15, 2022 printing of The Himalayan Times.

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