Tuesday, August 1, 2017

Cooking gas price down by Rs 25 per cylinder

Nepal Oil Corporation (NOC) has reduced the price of Liquefied Petroleum Gas (LPG) – popularly known as cooking gas – by Rs 25 per cylinder.
A cooking gas cylinder will now cost Rs 1,325 per cylinder, according to the state-owned petroleum monopoly. "The new price will come into effect from Wednesday."
With the new price, NOC still earns a profit of Rs 74.90 on sales of every cylinder of LPG. According to the NOC, the Indian supplier has reduced the price of cooking gas by Rs 54 per cylinder.
The decision is expected to give some respite to consumers, NOC spokesperson Sitaram Pokhrel said, adding that the decision to adjust the price downwards was based on price in the international market that has been continuously coming down in recent month.
Pokharel said that the NOC revised the LPG price after Indian Oil Corporation (IOC) – the sole supplier of petroleum products to Nepal – reduced the price. "However, prices of other petroleum products have remained unchanged, as according to Pokharel, IOC has raised prices of rest of the petroleum products this time. "It will cause the NOC's projected profit to drop to Rs 620 million per month from Rs 800 million."
The Indian supplier has raised the price of petrol by 1.08 per litre and that of diesel by 48 paisa per litre. Also, kerosene price has gone up by Rs1.10 per litre and air fuel has become costlier by Rs1.14 per litre.
According to the revised prices, NOC will earn a profit of Rs 4.84 on sales of every litre of petrol and Rs 17.13 on sales of every litre of kerosene. It will, however, suffer a loss of Rs1.18 on sales of every litre of diesel. Likewise, the NOC will earn a profit of Rs 9.16 on every litre of fuel sold to domestic airlines and Rs 20.29 on every litre of fuel sold to the international airline companies.
Last month too NOC had reduced petroleum prices.

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