NOC reluctant to revise prices even as it receives reduced rates of petroleum products

Published On: September 16, 2022 06:45 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 16: Nepal Oil Corporation (NOC) has received new price lists with the reduced petroleum prices from Indian Oil Corporation (IOC) on Friday.

According to an NOC official, the Indian supplier has reduced the prices of petrol, diesel and aviation fuel this time. In its revised lists, diesel is cheaper by 44 paisa per liter, petrol Rs 6.55 per liter and aviation fuel is cheaper by Rs 1.50 per liter.

Even after the revised rate, NOC claims that it will still face a loss of over Rs 5 per liter in diesel while it will earn profit of Rs 8 per liter in petrol. The state-owned oil monopoly has estimated an overall monthly loss of Rs 200 a month in the new price rates.

This is the fourth time in the row that the NOC received reduced price rates of petroleum from the IOC. During the period, the price of petrol alone has dropped by more than Rs 40 per liter.

The NOC is facing criticisms from various quarters for not reducing the prices of petrol despite a significant drop in its cost. Instead, the NOC raised the price of diesel and kerosene by Rs 6 per liter two weeks ago.

According to international media, gasoline prices have dropped about 26 percent since June. On Thursday, the Brent Crude fell 3.79 percent to US $90.53 per barrel in the international market. “However, there is a slim chance that NOC will reduce the fuel rate this time too in the domestic market,” said a high-level source at the NOC.


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