Friday, November 4, 2011

Government plans to hike cooking gas price

After transportation fare hike, the government is planning to hike cooking gas price.
Citing a huge loss and cash crunch to state oil monopoly, Ministry of Commerce and Supplies is planning to hike Rs 100 per cylinder of cooking gas from next week, a source at the ministry said.
"Currently a LPG cylinder costs Rs 1,325 but it will be Rs 1,425 from next week," he said, adding that Minister for Commerce and Supplies Lekh Raj Bhatta and concerned stakeholders held a meeting in the ministry today on the price hike issue. "They have all agreed to hike the price of cooking gas that is going to fuel the inflation further," the source added.
The minister has been waiting for the Prime Minister Dr Baburam Bhattarai's green signal to hike the price, he said, adding that the minister wants the Premier to take the decision as it is necessary to adjust the price according to international price.
According to Nepal Oil Corporation (NOC), it has been incurring a loss of Rs 288.66 on a cylinder of cooking gas.
"The monthly loss has increased by Rs 200 million according to November 1 price list of its sole supplier Indian Oil Corporation (IOC)," said the corporation that will bear a loss of Rs 905 million every month, according to new price list.
It will incur Rs 1.61 loss on a litre of petrol, Rs 13.13 on a litre of diesel and Rs 1.81 on a litre of kerosene, according to the new price list, though it will have Rs 17.45 profit on a litre of Aviation Turbine Fuel (ATF) domestic and Rs 20 profit on a litre of ATF international, according to NOC spokesperson Mukunda Prasad Dhungel.
The state oil monopoly also claimed that it had a loss of Rs 687.01 million according to October 16 price list of Indian Oil Corporation.

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