NOC slashes prices of petrol‚ diesel and kerosene by one rupee

KATHMANDU, Apr 3: Nepal Oil Corporation (NOC) — the state-owned petroleum supply monopoly — has slashed the prices of petroleum, diesel and kerosene by one rupee on each litre, with effect from tomorrow. As per the revised rate, petrol will now cost Rs 109 per litre, and diesel and kerosene Rs 86.50 per litre each.

NOC’s monthly profit is estimated to increase to Rs 630 million from Rs 619.8 million earlier, as its profit margin in petrol and diesel will go up. On sales of each litre of petrol, diesel and kerosene, NOC will from tomorrow generate profit of Rs 13.36, Rs 4.04 and Rs 23.67, respectively. At present, such profit stands at Rs 12.61 on petrol, Rs 3.49 on diesel and Rs 23.90 on kerosene.

According to NOC, monthly sales of petrol is about 20,000 kilolitres (kl), diesel (75,000kl) and kerosene (2,500kl) and NOC will generate monthly profit of Rs 267 million from petrol, Rs 303 million from diesel and Rs 59.17 million from kerosene.

However, NOC’s loss on sales of each cylinder of cooking gas will go up to Rs 50.47 against Rs 48.08 earlier. Due to subsidy in liquefied petroleum gas (LPG) — or cooking gas, as it is popularly called — NOC has been incurring loss in its sale. NOC’s monthly loss in cooking gas is projected to rise to Rs 37.9 million compared to Rs 36.1 million at present, as per NOC Spokesperson Mukunda Ghimire.

NOC has revised the fuel prices after a month, even though the automatic pricing mechanism allows it to revise the prices of petrol, diesel and kerosene every fortnight as per the price list received from its supplier, Indian Oil Corporation (IOC).

IOC, which is the sole supplier of NOC, sends the revised fuel price list based on the international market every first and 16th day of the English calendar.

NOC had kept the price of the petroleum products constant as reportedly there was no huge fluctuation in the rate.