NOC adopts automated pricing mechanism

Published On: July 17, 2023 09:50 PM NPT By: Samiksha Shrestha

Transportation fares drop after decline in prices of petroleum products

KATHMANDU, July 17: With the decline in prices of petroleum products in India, Nepal Oil Corporation (NOC) has also adjusted the prices accordingly. Now, the retail price of petrol has been slashed by Rs 6 per liter, that of diesel by Rs 4 per liter and that of LPG cylinders by Rs 10 per cylinder.

According to the NOC, petrol will now cost Rs 164 per liter in areas including Kathmandu Valley. Meanwhile, petrol will cost Rs 161.50 per liter in Terai districts and Rs 163 in inner Madhesh. Diesel and kerosene will cost Rs 146 per liter in Kathmandu Valley, Rs 143.50 in Terai districts and Rs 145 in inner Madhesh. Similarly, the price of domestic aviation fuel has been fixed at Rs 136 per liter. The price of LP gas (cooking gas) has decreased from Rs 1,800 to Rs 1,790 per cylinder.

In addition, the DoTM has reduced the fare of public vehicles by 2.13 percent. Director General of DoTM, Narayan Prasad Bhattarai said that the fares for cargo vehicles have decreased by 2.78 percent in the hills and 3.09 percent in the Terai.

In the midst of the government implementing Automated Pricing System (APS) for petroleum products after nine years, the government has also directed air service providers to mandatorily register for VAT in the budget for the fiscal year 2023/24. Airlines Operators Association of Nepal and air service providers have announced inclusion of Value Added Tax (VAT) in the airfares for domestic flights.

In the case of international air transport services, value added tax will be charged on the air ticket. From Monday, the rule of 5 percent tax has been implemented on foreign tour packages of travel agencies.

In the notification issued by the Inland Revenue Department, it is mentioned that since the value added tax will be levied on air transport services, the tax must be registered and collected within 30 days from the date on which the tax is levied or the taxable transaction limit exceeds Rs 2 million.

Yeti Airlines Spokesperson Sudarshan Bartaula explained that the airfares for domestic flights will see a rise by approximately six percent.

Minister for Physical Infrastructure and Transport Prakash Jwala said, "The reduced fare will be implemented from July 17, its monitoring has been entrusted to the administration office and the traffic police. There is a procedure for maintaining the scientific fare to adjust the new fare if there is more than a 5 percent increase in petroleum products."