KATHMANDU, Aug 2: The government has reduced the price of petroleum products offering some respite to consumers. The state-owned Nepal Oil Corporation (NOC) reduced the price of Liquefied Petroleum Gas (LPG) by Rs 25 per cylinder and Rs 2 per liter each in petrol, diesel and kerosene effective from Wednesday.
With the fresh price adjustment, an LPG cylinder will cost Rs 1,375 in the market. While petrol will cost Rs 97 per liter, diesel and kerosene will be available at Rs 73 per liter each.
“The price will be effective from Wednesday. Fuel prices have been reduced in line with the falling fuel prices in the international market,” Gopal Khadka, managing director of NOC told Republica, adding, “While the price of LPG has been slashed by Rs 25 per cylinder, prices of petrol, diesel and kerosene have been reduced by Rs 2 per liter each.”
NOC has claimed that the new adjustment has been made as per the automatic fuel pricing mechanism adopted by the government two years ago.
Under this mechanism, NOC is required to adjust fuel prices on the basis of the prices provided every fortnight by its supplier Indian Oil Corporation (IOC).
However, NOC is often criticized for failing to make price adjustments regularly.
NOC, however, said that it would calculate its new projected monthly profit and new profit for each petroleum products Wednesday. “We could not calculate new profit on fuel products following the adjustment today. We will calculate it tomorrow,” Mukunda Ghimire, NOC spokesperson said. Before this adjustment, NOC had been enjoying profit of Rs 6.61 per liter of petrol, Rs 0.67 per liter of diesel, Rs 16.72 per liter of kerosene, and Rs 45.07 per cylinder of cooking gas.