The adjustment, which came with instant effect, has raised the price per cylinder to Rs 1,250 in the capital and other hilly markets. Consumers in Tarai, however, would need to pay Rs 1,230 per cylinder.[break]
The new decision has added fresh burden to the urban middle class, who are the main consumer of this popular household fuel, but has slashed the country´s oil deficit.
Prior to the fresh hike, NOC was incurring a loss of Rs 333 per cylinder. This single product alone was inflicting a massive loss of Rs 281.38 million to the state-owned fuel utility in a month.
“Now our loss on LPG has dropped to Rs 208 per cylinder. This has lowered our loss by Rs 175.76 million to Rs 105.62 million a month,” NOC Chief Digambhar Jha told Republica.
LPG was the single largest loss generating product for NOC for this month. Otherwise, it was earning a profit in the range of Rs 3 to 15 on kerosene, petrol and aviation fuel, while it is operating at break-even point on diesel.
Because of the profits on other products, NOC had estimated its loss for January to stand at Rs 250 million. With the adjustment, it has now revised its loss down to less than Rs 80 million.
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