Macroeconomic Situation Report
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KATHMANDU, Feb 22: Price of diesel and petrol fell by only 12.77 percent and 16.66 percent in Nepal between mid-January 2015 and mid-January 2016 despite 37.1 percent drop in price of crude oil in the international market during the period.
Macroeconomic report of first six months of 2015/16, unveiled on Sunday by Nepal Rastra Bank (NRB), shows global crude prices fell by 37.1 percent in the review period. Price of crude oil, which was US$ 45.82 in mid-Jan 2015, fell to $28.84 per barrel in mid-January 2016.
The figures unveiled by the central bank shows that state-owned Nepal Oil Corporation (NOC) is not adjusting fuel prices in line with price of crude oil in the global market.
NOC had adopted automatic pricing mechanism on September 28, 2014.
Moreover, NOC has even defied direction of the Office of the Prime Minister and Council of Ministers (OPMCM) to lower fuel prices in line with drop in price of oil in the global market. OPMCM had issued directive to NOC on February 4. However, the state-owned petroleum monopolist has not revised rates even though its sole supplier - Indian Oil Corporation (IOC) - has already forwarded new rates.
Consumer rights activists say that NOC does not adjust fuel price as per the rates that IOC forwards to it every fortnight" "NOC has been keeping huge profit margin. Such activity is hitting consumers har"," Madhav Timalsina, president of Consumer Rights Investigation Forum" "If NOC had adjusted fuel prices on the basis of price rates forwarded by IOC, consumers would have benefited a lo"."
NOC officials say they cannot reduce fuel price in line with price of crude oil in the global market" "We have been adjusting fuel prices if there is significant change in price rates forwarded by IO"," an NOC official told Republica.
