Wednesday, January 2, 2019

Fuel prices to come down further

Nepal Oil Corporation (NOC) has reduced the price of petrol and diesel by Rs 2 per litre.
The state-owned fuel monopoly has revised prices of petrol, diesel and kerosene downwards by Rs 2 per litre, according to the spokesperson of the NOC Birendra Goit. He said that the new price will be effective from tonight.
"Following the price cut, petrol will now cost Rs108 per litre, while diesel and kerosene will cost Rs 97 per litre each," he said, adding that the NOC has, however, not revised the price of aviation fuel and Liquefied Petroleum Gas (LPG), popularly known as cooking gas.
The NOC attributed the drop in price to falling fuel prices in the international market.
Earlier on December 3, the NOC had slashed the prices of petrol, diesel and kerosene by Rs 2 per litre. NOC has already reduced fuel price twice in the last one month – on December 3 and 18 –owing to fall in price in the international market. NOC has adopted automatic pricing system to adjust price of petroleum products according to the international price, and adjust the price fortnightly.
The Indian Oil Corporation (IOC) – the only supplier of fuel to NOC – has reduced fuel prices for NOC for the first half of January. The fuel prices are likely to go down further in the domestic market owing to the constant fall in their prices in the international market.
The global crude oil price has been constantly falling since the last two months. Though average price of crude oil was above $70 per barrel in October, its price has dropped to almost $53 per barrel at present.
Though NOC had been incurring a monthly loss of over Rs 1 billion a month ago, but after the price adjustment, the corporation currently books monthly profit of more than Rs 1.5 billion.

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