Monday, June 9, 2008

Petroleum products' price hike

Nepal Oil Corporation (NOC) after its various attempts hiked the price of petrol to Rs 100 per liter from Rs 80, the price of diesel and kerosene to Rs 70 and Rs 65 per liter, respectively. The price of cooking gas per cylinder has also been increased from Rs 1100 to Rs 1200 (for Kathmandu valley) and Rs 1180 (for outside Kathmandu).
The state-owned oil monopoly thinks that new price will help improve supplies. But its not that easy as the supply has been drastically cut down to 40 per cent recently.
according to the only oil supplier, even with the new price rise, the monthly losses of NOC stands at Rs 1.5 billion. Earlier its monthly losses stood at Rs 2.62 billion. Owing to severe rise of fuel price in the international market, it had been suffering huge losses and had reduced supplies by 40 per cent.
The board of directors today took decision to hike the price of petroleum products after they got green signal from the political committee of the cabinet to adjust market prices.
The government has also allowed the private sector also to import and supply the petroleum products. But the million dollar question is will it solve the problem or the ultimate solution is desolution of the white elephant NOC.

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