KATHMANDU, Sept 1: Nepal Oil Corporation (NOC) has raised the price of petrol by Rs 2 per liter.
According to the NOC, the state-owned oil monopoly, the new rate will come into effect from Tuesday midnight.
With the revised price, the petrol will now cost Rs 107 a liter within the Kathmandu Valley. The petrol currently retails at Rs 105. The NOC stated that the decision to raise the price follows the recent recovery of the oil prices in the international market. It raised the price of petrol in line with the revised price forwarded by the Indian Oil Corporation recently, according to the NOC. IOC is the sole supplier of petroleum products to Nepal.
However, the NOC has kept the price of diesel, kerosene, aviation turbine fuel (ATF) and liquefied petroleum gas (LPG) unchanged. The NOC has raised the price of petrol in less than two weeks. Earlier on August 16, the NOC had raised the retail price of petrol, diesel and kerosene each by 1 rupee per liter.
Earlier on June 30, the NOC decided to increase the price of petroleum products by Rs 5 to Rs 101 per liter. Though it had slashed the price of petrol by Rs 10 per liter in April amid slump of fuel price in the international market, the cheaper price could not benefit the public amid nationwide lockdown enforced to curb the spread of novel coronavirus disease (COVID-19).
NOC said that it revises fuel price on the basis of the automated price mechanism that was put in place in 2014. However, NOC is facing criticisms for not revising the price when it falls in the international market as swiftly as it does when the price goes up.