Kathmandu, Oct 2: Within 24 hours after increasing the price of petroleum products, the Nepal Oil Corporation (NOC) took a U-turn and reversed its decision. The state-owned oil monopoly announced its decision to hike the price of petroleum products effective from Sunday midnight (October 2).
NOC stated in a notice issued on Sunday that the decision to hike the price of petroleum products has been withdrawn as per the directive of the government.
A meeting of the Council of Ministers held earlier on Sunday had instructed the NOC to immediately withdraw its decision to increase the price of petroleum products, taking into consideration the imminent festivals and the interest of the general public.
NOC spokesman Manoj Kumar Thakur told RSS that the decision to hike the price has been reversed and it would be adjusted from the money to be received from the price stabilization fund and the Government of Nepal.
NOC on Saturday hiked the price of petrol and diesel by Rs 6 per liter, and that of kerosene by Rs 2 per liter and aviation turbine fuel (ATF) for both domestic and international flights by Rs 8 per liter. Similarly, the price of liquefied petroleum gas (LPG) was increased by Rs 215 per cylinder. The price of LPG reached Rs 2,110 per cylinder after the hike in price on Sunday. NOC argued that it increased the price of petroleum products after getting a revised list from its Indian supplier the Indian Oil Corporation.
The NOC is supposed to adjust the price of petroleum products every fortnight through an automatic price adjustment mechanism after receiving the price list from IOC. However, it hardly abides by the automatic price mechanism and is accused of increasing the price more frequently even when the IOC reduces the price.