Oil prices down; petrol at Rs 116, diesel Rs 92

- RAJESH KHANAL, Kathmandu

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

PETROL

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

DIESEL

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

(Source: NOC)

 

Published: 20-12-2014 09:34

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