Govt slashes LPG price by Rs 50 per cylinder

Published On: September 1, 2016 07:00 PM NPT By: Sujan Dhungana

KATHAMNDU, Sept 1: The government has reduced the price of cooking gas by Rs 50 per cylinder, effective from Thursday mid-night. 

A meeting of the Nepal Oil Corporation (NOC) management Thursday afternoon took the decision to this effect. Following the price cut decision, a cylinder of Liquefied Petroleum Gas (LPG) will cost Rs 1,325 in the domestic market. 

The decision comes following an earlier direction by the government to NOC to reduce the LPG price and give consumers a festive season respite. “LPG price has been reduced by Rs 50 per cylinder. The price has been reduced as per an earlier direction by the Ministry of Supplies (MoS) to do so and give consumers some respite ahead of the festive season,” Bhanubhakta Khanal, NOC spokesperson, told Republica. 

In what is seen as a consumer-friendly decision on Sunday, MoS had announced the sale of essentials including cooking gas, lentils, rice, ghee, oil, sugar, paneer and goat at subsidized rates throughout the upcoming festive season. 

The government announced a festive season discount of Rs 5 per kg for 15 varieties of rice sold by Nepal Food Corporation (NFC), Rs 5 per kg for sugar and Rs 2 per kg for salt sold by Salt Trading Corporation (STC), and a Rs 10 per kg festive subsidy for ghee sold by the Dairy Development Corporation (DDC). 

NOC will still make a profit of Rs 61 per cylinder LPG. Similarly, NOC makes a profit of Rs 10.65 per liter of petrol, 5.38 per liter diesel and 16.88 per liter kerosene. 

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