Print Edition - 2014-12-20 | MONEY
Oil prices down; petrol at Rs 116, diesel Rs 92
Dec 19, 2014-
Nepal Oil Corporation (NOC) on Friday slashed gasoline prices by 6 percent with crude oil in freefall in international markets. This is the single largest price cut ever by the state-owned oil monopoly and the sixth downward revision since it adopted an auto pricing mechanism on September 28.
Petrol now costs Rs 116 per litre, down Rs 7; and diesel and kerosene cost Rs 92 per litre, down Rs 5.50. Likewise, NOC has priced aviation fuel sold to domestic airlines at Rs 133 per litre, a reduction of Rs 10. However, there is no change in the price of LPG (liquefied petroleum gas).
NOC Spokesperson Mukunda Ghimire said the corporation had revised prices in line with the drop in petroleum prices in the world market. The price of Brent crude oil has fallen below $59 a barrel for the first time since May 2009. NOC said that even with the price cuts, it would be making a monthly profit of Rs 485.9 million. Last month, the corporation raked in Rs 512.3 million in profits.
Ghimire said that debt-ridden NOC would be using the money to settle its outstanding amounts. “So far, we have paid Rs 3.22 billion to Indian Oil Corporation (IOC) and Rs 1.50 billion to the Employees Provident Fund.”
NOC owes Rs 35.16 billion in loans to the government and different financial institutions. It owes Rs 12.64 billion to the government alone. The corporation had planned to revise fuel prices on Tuesday immediately after receiving IOC’s new tariff as per the auto pricing system, but it was delayed by three days.
IOC reviews export prices of petrol, diesel and kerosene every fortnight, and of other products such aviation fuel and LPG on a monthly basis. Based on IOC’s rates, NOC revises its prices according to the auto pricing mechanism.
The working guideline on the auto pricing mechanism, which was introduced on September 28, allows the corporation to revise prices when the cost of finished products fluctuate by a minimum of 2 percent.
NOC said that it wanted to amend the guideline to allow it to cut prices by a larger percentage. But due to the absence of its chairman, Ghimire said the board meeting decided to revise prices without amending the guideline.
The prime minister had ordered the line ministry to immediately cut prices after student unions submitted a memorandum demanding that prices should be slashed as global prices had fallen.
MAJOR PRICE CUTS
Oct 25, 2008 Rs 95.00 from Rs100
Nov 1, 2008 Rs 90.00 from Rs 95.00
Dec 3, 2008 Rs 85.50 from Rs 90.00
Dec 26, 2008 Rs 80.50 from Rs 85.50
Feb 2, 2009 Rs 77.50 from Rs 80.50
Jan 26, 2012 Rs 112 from Rs 115
March 20, 2014 Rs 134.50 from Rs 140
Oct 16, 2014 Rs 130.47 from Rs 133.47
Dec 19, 2014 Rs 116 from Rs 123
April 20, 2003 Rs 33.50 from Rs 35.50
Nov 1, 2008 Rs 65.00 from Rs 70
Dec 3, 2008 Rs 60.50 from Rs 65
Feb 2, 2009 Rs 57.50 from Rs 59.50
Jan 26, 2012 Rs 81.00 from Rs 85
March 20, 2014 Rs 105.50 from Rs 109
Oct 16, 2014 Rs 103.17 from Rs 105.23
Dec 19, 2014 Rs 92 from Rs 97.50
Published: 20-12-2014 09:34