Petrol, diesel, kerosene cheaper by Rs 2 per liter
KATHMANDU, Sept 11: Nepal Oil Corporation (NOC) has reduced the price of some petroleum products by Rs 2 per liter.
The state-owned oil monopoly decided to slash the price of diesel, petrol and kerosene by Rs 2 per liter. The new rates came into effect from Tuesday noon. With the decision to lower the price of the petroleum products, petrol will now cost Rs 107 a liter in Kathmandu valley, while diesel and kerosene will retail for Rs 97 per liter each.
The decision to revise price downward coincides with the formal launch of the India-Nepal cross border petroleum pipeline (Motihari-Amlekhgunj). The prime ministers of Nepal and India jointly inaugurated the pipeline constructed from Motihari of India to Amlekhgunj of Nepal on Tuesday.
The 69-kilometer pipeline was jointly inaugurated by Prime Minister KP Sharma Oli from Kathmandu and Indian Prime Minister Narendra Modi from New Delhi through a remote control system.
Supply of fuel from the pipeline is estimated to save Rs 2 to Rs 5 per liter in transportation cost. Officials say this is the first cross-border petroleum pipeline in South Asia.
NOC, however, has attributed the reduction in petroleum prices to downward revision in prices in the international market, savings from the supply of fuel through the newly inaugurated cross-border pipeline and fluctuation in foreign currency exchange.
In its statement issued on Tuesday, NOC said that the price was revised as per its 'automated pricing mechanism' to provide relief to consumers. Under this mechanism, NOC revises the fuel prices in line with the fluctuation of prices of petroleum products in the international markets based on the price it receives from its sole supplier – Indian Oil Corporation.