Cooking gas price drops, petro prices drop for the fourth time in a row

The state oil monopoly - Nepal Oil Corporation (NOC) - is spreading good cheer.
In a sign of the changing times, it has reduced the price of the cooking gas by Rs 50, making it Rs 1,150 per cylinder, effective from tonight. This is the first time -- in last two months from October 25, when the NOC started downward revision of price -- that the price of ever-scarce cooking gas has been reduced.
Despite being in the red as far as the cost of cooking gas is concerned, the cut is being made to give relief to consumers. However, there has been symbolism galore in price cuts in other petroleum products. If petrol will cost Rs 5 less - to be available Rs 80.50 per litre as per NOC's figure - then diesel and kerosene have gone down to by only one rupee. Both will be available at 59.50 per litre.
The goodies were announced following a board meeting of NOC late this evening.
Incidentally, this is fourth time that the NOC has come up with downward revision to prices, paying heed to global crude prices.
"We will now make a tentative operating profit of Rs 400 million. As of now, the liabilities stand at Rs 15 billion," said Digamber Jha, managing director, NOC.
The latest round of revision factored in both outstanding and consumers' interest. "We don't want to make good of our past losses at the expense of eroding consumers' confidence," said Purushottam Ojha, secretary, commerce and supplies.
NOC has gone ahead with the correction a week ahead of the schedule -- as per the norm, it receives the price list from the sole supplier Indian Oil Corporation (IOC) on 1st and 15th of every English month and revises price on the list it receives on 1st -- to lift consumers' spirit.
There is good news for Tarai consumers as well. The latest mechanism will not only ease the demand for fuel in the central region, but also makes the prices of fuel cheaper across Tarai.NOC is opposed to drastic price cuts due to two basic reasons. "Of late, the dollar has appreciated against the Nepali currency. Also, the prices have to be on a par with bordering Indian towns, else there will be a skewed demand-supply ratio," said Ojha.
The rate of Air Turbine Oil (ATF) has also gone down by Rs 5 to Rs 90 per litre for domestic and $200 to $1000 per kilolitre for international flights.
The corrections are making no impact on the all-powerful transport entrepreneurs' cartel. They have steadfastly refused to reduce transport fares, flexing their muscles and subsequently pushing the inflation up to 14.5 per cent.
The Ministry of Labour and Transport Management has been reduced to a casual bystander.
The NOC slashed the petro prices on October 25, November 1, December 3 and today (December 26) for thr fourth time in two months.

Price in the Valley
Cooking gas -- Rs 1,150 per cylinder
Petrol -- Rs 80.50 per litre
Diesel/Kerosene -- Rs 59.50
ATF (domestic) -- Rs 85 per litre
ATF (Int'l) -- $1000/kl