Nepal Oil Corporation on Friday slashed the prices of petrol and diesel.

The state-owned oil monopoly reduced the prices effective from midnight on Friday as per the automatic fuel price mechanism.

As per the new tariff, the price of petrol has been reduced by Rs1 while that of diesel/kerosene has been decreased by Rs2.

Consumers will now have to pay Rs171 per litre for petrol and Rs158 per litre for diesel and kerosene in Kathmandu, Pokhara and Dipayal.

They have to pay Rs170 for petrol and Rs157 for diesel and kerosene per litre in Surkhet and Dang, and it will cost Rs168.50 for petrol and Rs155.50 for diesel and kerosene in Charaali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj.

In Nepal, under the automatic fuel price mechanism, the corporation sets prices based on the tariff it receives from its sole supplier, the Indian Oil Corporation. Indian Oil Corporation reviews export prices of petrol and diesel/kerosene every fortnight and of other products such as aviation fuel and LPG monthly.