NOC hikes petroleum products prices

Nepal Oil Corporation (NOC) increased the price of petrol, diesel and kerosene today.
The government decided to increase the price of petrol, diesel and kerosene by Rs 4 although it had brought prices down by Rs 3 on January 26.Petrol will now cost Rs 116 per litre and diesel and kerosene Rs 85, according to the revised price.
This is the second time that the state oil monopoly has decided to hike the price of petroleum products since January.
In the sharpest one-time increment ever, the state oil monopoly had jacked up the price of petroleum products on January 18. It had hiked price of petrol by Rs 10 and diesel and kerosene by Rs 9 and cooking gas by Rs 175. But the Ministry of Commerce and Supplies, on January 26, decided to bring down prices following a week-long student protest. The ministry had directed Nepal Oil Corporation to reduce price of petrol by Rs 3 per litre, diesel and kerosene by Rs 4 and cooking gas by Rs 85 per cylinder at that time.
With today’s hike, the monthly loss of Nepal Oil Corporation has come down to Rs 857.5 million.
The hike in petroleum price will add to the burden on household budgets already stretched with soaring prices of essential foodstuffs. Increase in the price of diesel will not only push up the cost of food items, including fruits and vegetables, and many other perishables that are moved largely by trucks but also the operating cost of industries.
However spokesperson at Ministry of Commerce and Supplies Dipak Subedi said inflation due to today’s price hike will be nominal. Public vehicle fares will not go up and consumers will not be hit, he claimed.