KATHMANDU, June 17: Nepal Oil Corporation (NOC) has reduced price of petrol, diesel and kerosene by Rs 1.5 per liter each.
The new rate came into effect from Friday midnight.
Officials of NOC said that the petroleum monopolist reduced fuel prices as per the new rates for the next fortnight that it received from its sole supplier - Indian Oil Corporation (IOC).
The fresh adjustment in the price means petrol will cost Rs 100 per liter, while diesel and kerosene will retail at Rs 76 per liter each.
Sitaram Pokhrel, the spokesperson for NOC, said that the corporation reduced price rates as per the new rates for the next fortnight send by IOC on Friday. “IOC, our sole supplier, has slashed price of different products in line with the falling prices in the international market,” he said.
Petrol was earlier sold at Rs 101.50 per liter, while diesel and kerosene retailed at Rs 77.50 per liter each.
NOC, however, has kept the prices of liquefied petroleum gas (LPG) and aviation turbine fuel (ATF) unchanged. NOC is making profit of around Rs 40 per cylinder (14.2 kg) on LPG.
According to Pokhrel, the adjustment has been made as per the automatic fuel pricing mechanism that the NOC adopted in 2015. As per the mechanism, NOC has to make adjustment to fuel prices every 15 days. However, it is the first adjustment in prices of petroleum products since mid-December 2016.
“Further reduction will make petroleum products cheaper in Nepal compared to India. This could encourage smuggling of petroleum products out of the country,” Pokhrel said, adding: “NOC will now adjust fuel prices every fortnight on a regular basis.”
NOC, however, has been drawing flaks from all quarters for its inability to make adjustment to petroleum prices as per the automatic pricing mechanism. Jyoti Baniya, a consumer right activist, said that the fresh price cut will give some relief to consumers.
“Even after the adjustment, NOC is making huge profit. Also, it did not reduce price of LPG, which people use in their day to day life, despite having huge profit margin,” he said, urging NOC to make adjustment to fuel prices as per the rates send by IOC.