NOC slashes fuel prices

  • Now, petrol Rs 125.5 per litre, and diesel and kerosene Rs 99.5 per litre
- POST REPORT, Kathmandu
NOC slashes fuel prices

Nov 24, 2014-

Nepal Oil Corporation (NOC) on Monday slashed the price of petrol by Rs 2.50 per litre, and that of diesel and kerosene each by Rs 2 per litre, in line with international market prices. With the latest prices cuts, effective from Monday midnight, petrol now costs Rs 125.50 per litre, and diesel and kerosene each costs Rs 99.50 per litre.

NOC Spokesperson Mukunda Ghimire said the prices were revised after the NOC received reduced rates from its supplier Indian Oil Corporation (IOC). He added that NOC’s projected profit for November has reached Rs 183.7 million.

NOC had received the price list from IOC on November 16, but it delayed the domestic price revision citing the failure to hold the board meeting in time. The delay in the price revision resulted in a profit of Rs 61.19 million in just a week for NOC.

According to the oil monopoly, domestic petrol consumption stands at 7.11 million litre, while that of diesel and kerosene amounts to 21 million litres and 700,000 litres, respectively. Based on the new rates and consumption patterns, NOC earned a profit of Rs 17.79 million in petrol, Rs 42 million in diesel and Rs 1.4 million in kerosene in just a week.

This is the fourth time NOC has revised fuel prices after it adopted auto pricing system two months ago. The new pricing mechanism, which requires NOC to revise the prices with every new price list sent by IOC, was adopted with an aim of reducing its NOC’s losses.

According to Reuters, the price of the petroleum has been falling since July. It reached four-year low of $76.76 a barrel on November 14, but had gone up slightly since then, reaching $79.92 per barrel on Monday.

Published: 25-11-2014 09:37

User's Feedback

Click here for your comments

Comment via Facebook

Don't have facebook account? Use this form to comment