NOC maintains petrol, diesel prices citing gas deficit as reason for non-adjustment
November 21, 2023 01:30 PM NPT
By: Dilip Poudel
KATHMANDU, Nov 21: Even though the price of diesel has decreased by the Indian Oil Corporation (IOC), Nepal Oil Corporation (NOC) has not lowered its price. Despite a reduction of Rs 7 per liter for diesel and 80 paisa for petrol, NOC has justified its decision, citing a loss of Rs 280 per LPG cylinder.
Birendra Goit, the Deputy Managing Director of NOC, explained that while the company gained a profit of Rs 340 million in diesel, it incurred a loss of Rs 340 million in gas. Consequently, NOC refrained from adjusting the prices, emphasizing the gas deficit as the primary reason.
Goit stated, "The price of diesel has decreased, but we did not adjust it due to the gas deficit." Despite consumer demands for a diesel price reduction, the NOC hasn’t met the demand. The NOC determines the prices of fuel every 15 days based on rates from the IOC. The Corporation claims a profit of 230 million from the IOC prices.
Deputy Managing Director Goit revealed that the price adjustment hasn't been made to cover losses resulting from outstanding debts to the government. He expressed optimism, saying, "After the diesel price reduction, it will offset the gas loss."
The NOC acknowledges a debt of Rs 700 million to the government. Using the automatic price system, the NOC increased the price of LPG by Rs 215 per cylinder, and those of diesel and kerosene by Rs 6 per liter, petrol by Rs 2 per liter, and jet fuel by Rs 8 per liter last month. However, the automatic system ceased following government directives to roll back the price hike.
Currently, in Jhapa Charali, Biratnagar, Janakpur, Bara Amlekhgunj, Bhairahawa Bhalbari, Nepalgunj, Dhangadhi, Birgunj, petrol is Rs 169.50 and diesel Rs 165.50 per liter. Similarly, in Surkhet and Dang, petrol is Rs 171 and diesel Rs 167 per liter. In Kathmandu, Pokhara and Dipayal, petrol is Rs 172 and diesel is Rs 168 per liter. The NOC said that these prices remain the same.
The petrol pump operators have collected less oil stating that the NOC can reduce the price as the price has come down from the IOC. Due to this, there is a partial shortage of fuel in the market.
"We are not adjusting the price now because we have to pay the debt to the government," said Goit, adding, "After the new prices come at the end of November, we may change the fuel prices from December 1."