NOC cuts petroleum prices

  • Now, petrol Rs 111.5 per litre; diesel, kerosene Rs 88 per litre each
- POST REPORT, Kathmandu
NOC cuts petroleum prices

Jan 18, 2015-

Nepal Oil Corporation (NOC) on Sunday reduced the prices of petrol, diesel and kerosene by Rs 2 per litre each. With the latest revision, petrol now costs Rs 111.5 per litre, and diesel and kerosene costs Rs 88 per litre each. This is the seventh time the state-owned oil monopoly revised the prices since the adoption of the auto pricing mechanism on September 28.

NOC Spokesperson Mukunda Ghimire said the corporation slashed the prices after receiving new price list from Indian Oil Corporation (IOC) on January 15. He attributed the reduction in oil prices in the domestic market to international market trends.

Brent crude price fell to $50.17 a barrel on Sunday, lowest since 2009, according to media reports. The fall in the oil prices has been attributed to the United States increasing its production that forced oil producing countries like Saudi Arabia, Nigeria and Algeria to supply their products to Asian markets, resulting in a drop in the prices.

NOC, however, has not revised the price of liquefied petroleum gas, citing losses in the business. NOC said it still faces a loss of Rs 211.36 per cylinder on LPG.

IOC reviews export prices of petrol, diesel and kerosene fortnightly, and those of other products such aviation fuel and LPG on a monthly basis.

According to NOC, it makes a profit of Rs 364.1 million per month as per the new prices. Ghimire said the oil monopoly now earns a profit of Rs 10.43 per litre on petrol, 87 paisa on diesel, and Rs 18.47 on kerosene.

NOC has outstanding dues of Rs 35.16 billion to be paid to the government, Employee Provident Fund, Citizen Investment Trust and BFIs.

LATEST PRICE CUTS

DATE                     PETROL        DIESEL

Sept 29, 2014    Rs 133.06    Rs 105.23

Oct 16, 2014      Rs 130.47    Rs 103.17

Nov 1, 2014       Rs 128          Rs 101.50

Nov 24, 2014    Rs 125.50     Rs 99.50

Dec 2, 2014      Rs 123          Rs 97.50

Dec 19, 2014   Rs 116           Rs 92

Jan 2, 2015      Rs 113.50     Rs 90

Jan 18, 2015    Rs 111.50      Rs 88

(Source: NOC)

Published: 19-01-2015 09:32

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