Petrol price slashed

The state-run Nepal Oil Corporation (NOC) has announced Tihar bonanza. Taking a global cue, the NOC has slashed the price of petrol by five rupees in a litre, effective from this midnight. "A litre of petrol costs Rs 95 from tonight," states a press release of the NOC, the oil monopoly.
However, the prices of cooking gas and kerosene remain unchanged.
"Uniformity has struck as far as the dual price of diesel is concerned. It will now cost Rs 70 per litre as compared to the earlier price of Rs 80 and Rs 70 respectively. Similarly, the price of Air Turbine Fuel (ATF) has also been reduced, from $1,500 to $1,400 per litre," said the NOC.
But, Nepal Petroleum Dealers' Association (NPDA) has come up with its own rates, which are marginally higher than the NOC price.
"A litre of petrol will cost Rs 95.50 in the Valley," said Saroj Pandey, president, NPDA.
Earlier, the petrol price had shot up to Rs 100 per litre in consonance with the global high of $145 per barrel.
However, of late there has been a sharp drop in fuel prices due to the ongoing global financial meltdown. It is hovering around $70 per barrel (159 litres).
The NOC had been under tremendous pressure to slash the prices.
Data reveals that the oil monopoly is raking a profit of Rs 25 per litre on an average in ATF. While, the gains are around Rs 16 per litre in petrol, thanks to fall in OPEC prices.
A team of Constitutional Assembly Members, led by Nabindra Raj Joshi, a CA member from Kathmandu constituency number 8, had met Rajendra Mahato, Minister for Commerce and Supplies, at his office in Singh Durbar yesterday to press for the price adjustment.
The NOC had been incurring a monthly loss of Rs 320 million in view of the global price hike.
According to the recent list sent by the Indian Oil Corporation (the sole supplier to the state-run monopoly) to the NOC, the latter had made a profit of around Rs 10 million as on October 16. NOC receives the revised list from the IOC on every 2nd and 16th of the English month. The state oil monopoly is making the arrangement that the price will go autometically up or down, according to the international price.