The revision in prices raised retail rates of petrol to Rs 85 per liter and kerosene and diesel to Rs 65 per liter each in the Kathmandu Valley, generating profits of Rs 6 on a liter of petrol and Rs 8.50 on a liter of kerosene to the state-owned fuel monopolist. [break]
NOC Chairman Purushottam Ojha said that the price hike was necessary because the latest import rates of July 1 were looking to inflict loss of Rs 100 million to the corporation. "We will use the profit to cross-subsidize some Rs 35 million in loss that NOC still continues to suffer from diesel," he said.
After the revision in prices, NOC will earn a profit of Rs 70 million a month, said NOC Spokesperson Mukunda Dhungel.
Prior to the decision, NOC had estimated its loss to mount to Rs 100 million in July.
Related story
NOC hikes fuel prices
