NOC slashes fuel prices

- POST REPORT, Kathmandu

Apr 2, 2015-

Nepal Oil Corporation (NOC) has slashed prices of petrol, diesel and kerosene by Re1 per litre each. Under the new tariff which went into effect on Thursday, petrol costs Rs109 per litre while diesel and kerosene each costs Rs86.50.

NOC spokesperson Mukunda Ghimire said fuel prices had been decreased as per the new rates published by NOC’s sole supplier Indian Oil Corporation (IOC). This is the 11th time that NOC has slashed prices after adopting an auto-pricing mechanism on September 28.

Ghimire added that NOC’s loss on a cylinder of cooking gas, however, had increased

to Rs50.47 from Rs48.08.

On Wednesday, retail prices of petrol and diesel in the Indian market were reduced by IRs0.49 per litre and IRs1.21 per litre respectively due to a slump in global oil prices, the Indian media reported. According to Reuters, oil prices on the international market fell 3 percent to $54.87 per barrel on Thursday.  

Ghimire said that they were yet to calculate the actual profits for NOC at the new prices. The state-owned oil monopoly receives updated price lists from IOC for gasoline every fortnight and for cooking gas every month. IOC’s price list had shown an increase in mid-March but NOC made no changes.

Since NOC adopted the auto-pricing system six months ago, it has paid off debts to the government, financial institutions and IOC amounting to Rs9.65 billion. The corporation has been able to earn profits with the auto-pricing system due to a fall in global oil prices.

Of the total payments, NOC paid Rs5.15 billion to IOC, Rs1.5 billion to the Employees Provident Fund and Rs3 billion to the Citizen Investment Trust. The corporation still owes Rs31.66 billion to various creditors, including Rs12.64 billion to the government.

Meanwhile, NOC has been mulling converting the amou-nt it owes to the government into its paid-up capital. The Finance Ministry is “considering” the proposal.

Published: 03-04-2015 09:22

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