Nepal Oil Corporation (NOC) today hiked petrol, diesel and kerosene prices.
"Petrol will now cost Rs 80 per litre -- dearer by Rs 2.50 -- and diesel and kerosene will now cost Rs 61 per litre -- Rs 2 dearer -- in Kathmandu Valley," said the NOC.
However, consumers have to pay a little more as Nepal Petroleum Dealers' Association (NPDA) that distributes petroleum products throughout the country always sells petroleum products after adding costs. It raised the price to stop the back flow of the petroleum products to India as there has been price difference in between Indian and Nepali markets.
The state oil monopoly has not changed the price of cooking gas, that according to the corporation, is making loss. LPG -- popularly known as cooking gas -- costs Rs 1250 per cylinder.
NOC has also not changed the Aviation Turbine Fuel (duty paid) that it is selling at Rs 75 per litre and ATF (bonded) that it is selling at $805 per 1,000 litre.
Earlier, on February 18, NOC increased the price of kerosene and diesel each by a rupee per litre making them Rs 59 per litre in the Valley. But the price in Tarai districts was increased to Rs 57.70 per litre only.
NOC had then also decided to increase the price as, according to it, the sole supplier of petroleum products had been incurring losses in both diesel and kerosene that is the poor men's fuel.
The state-owned petroleum importer had been -- after the price hike -- raking in a profit of Rs 20 million a month against its loss of Rs 37.5 million per month
NOC has been adjusting prices of petroleum products every month as since last year prices started fluctuating, pushing the state-owned corporation into the red.
Earlier, it had increased the price of kerosene and diesel by Rs 3 per litre on November 17. Then, both kerosene and diesel prices were hiked to Rs 58 per litre. NOC used to make a profit of Rs 4 on a litre of kerosene after the hike, while it incurred a loss of Rs 2.50 on a litre of diesel.
NOC had started making profit when the downward revision of prices started in October 2008, which continued till March. But the rise in prices of petroleum products in the international market again brought it to its knees.
Every month -- on 16th as per the Roman calendar -- NOC receives a new price list for petrol, diesel from the IOC -- its sole supplier. However, on the first of every month, it receives a new price list for petrol, diesel, kerosene, Air Turbine Fuel (ATF) and cooking gas.
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