NOC rolls back fuel prices, nominally

Nepal Oil Corporation (NOC) has reduced, albeit nominally, the prices of of petroleum products, effective from tonight.
The state oil monopoly has fallen in line with the international crude prices for the fourth time to rollback the prices. The roll back started in October.
Consumers will be happy to know that the price of cooking gas (LPG) has been further cut by Rs 25 to Rs 1,125 per cylinder. This rate is applicable to Kathmandu Valley, Pokhara, Nepalgunj and Bhairahawa. While, in rest of the Tarai, the cost has been fixed at Rs 1,105 per cylinder.
Tokenism galore in the revised petrol price. It will cost Rs 3 less at Rs 77.50 per litre. While, diesel and kerosene will cost only Rs 2 less at Rs 57.50 per litre.
The price of Air Turbine Fuel (ATF) - for domestic aviation industry - is Rs 5 less at Rs 80 per litre. As for bonded international fuel, the NOC has reduced by $100 to $900 per kilolitre (kl).
“As promised, we have cut the prices in accordance with global rates. We will now make a net profit of Rs 290 million after debt servicing and operating costs. Rs 550 million has been set aside for debt servicing,” said Purushottam Ojha, secretary, Minsitry of Commerce and Supplies.
Liabilities apart, the NOC will rake the following profits -Rs 1.49 in petrol, Rs 2.92 in diesel, Rs 9 in kerosene and Rs 16 in duty-paid ATF and Rs 26 for each cylinder of cooking gas.
"Despite the revision, the difference of price on Nepal-India border towns comes to Rs 7.50 and Rs 3.50 in pertrol and diesel, per litre, respectively" said Digamber Jha, managing director, NOC.
"This mechanism is imperative to curb the backflow of petroleum products to India,” he reasoned.
"The fall of crude in international market has helped the NOC to whittle down the present outstanding to Rs 14.25 billion," added Ojha.
The price of crude in the international markets stood at $42 per barrel (159 litre) today.
The revisions, however, are yet to trickle down to consumers as transporters' cartel has refused to slash fares, despite persistent government entreaties. Consequently, the inflation has climbed to 14.1 per cent due to high transportation costs.

Price in the Valley

Price Earlier Now
Cooking gas Rs 1,150 Rs 1,125 per cylinder
Petrol Rs 80.50 Rs 77.50
Diesel Rs 59.50 Rs 57.50
Kerosene Rs 59.50 Rs 57.50
ATF (domestic)Rs 85 Rs 80
ATF (Int'l) $1000/kl $900/kl