Petroleum dealers announce to raise fuel price unilaterally

Published On: January 12, 2021 06:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 12: Petroleum dealers have unilaterally announced to raise the prices of petroleum products by 50 paisa per liter from Thursday, expressing dissatisfaction over the “apathy” shown by Nepal Oil Corporation (NOC) to revise the commission rate of the dealers.

Issuing a press statement, Nepal Petroleum Dealers’ National Association said that the petrol pumps will be taking an additional 50 paisa per liter, besides the NOC-fixed rate while selling the petroleum products to the customers from Thursday.

According to the association, NOC has been ignoring over three years long demand of theirs to revise the commission rate.

There are 1,561 petrol pumps operating across the country. These petroleum dealers have been demanding that the state-owned oil monopoly raise the commission on petrol from the existing 3 percent to 4.5 percent. Similarly, they have been demanding to raise the commission on diesel from 2.65 percent to 4 percent.

The association has attributed the need for increasing the commission rate to an increased operation cost, workers’ wages, soaring market price and upgradation in infrastructure to meet government standards, among others.  

According to the association, two years ago, a study team of NOC had also proposed increasing the commission on petrol and diesel to 3.395 percent and 3.12 percent respectively. However, the study report has been gathering dust in NOC shelves, without being taken to implementation.  

NOC officials, however, termed the step taken by the petroleum dealers as ‘unlawful’. According to an official, the corporation is considering revising the dealers’ commission rate soon. 


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