Fuel price surges despite fall in international market: Report

KATHMANDU, June 5: Nepal Oil Corporation (NOC) has increased the price of petroleum products for the eighth times in the past six months citing hike in international fuel market.

With the newer adjustments that came into effect from Sunday, the price of petrol now costs Rs 113 per liter while the price of diesel and kerosene has gone up to Rs 95 per liter. The price of aviation fuel has been increased by Rs 5 to Rs 100 per liter. Likewise, the price of air turbine fuel for the international carriers has been increased by 75 USD to 1075 per kiloliter.

But the NOC hiked the price of fuel despite fall in international markets, according to Republica Daily.

The price of crude oil in the international market is on a decreasing trend. It fell from USD 68.23 to USD 67.10 per barrel between May 30 to June 1, but the NOC increased the prices by Rs 3 to Rs 28 per liter for the different kinds of fuel, said the Daily.

The price of diesel and kerosene has surged by nearly 30 percent and the cost of petrol and aviation fuel has been hiked by 15 percent in the past six months. Similarly the price for international carriers has been soared by 27 percent.

In November the price of diesel and kerosene was around Rs 74 and the price of petrol was fixed at Rs 100.

NOC officials have said that the price revision– being carried out every fortnight under the automatic pricing mechanisms– is according to price list sent by Indian Oil Corporation.

According to NOC, the corporaton gains a profit of Rs 1.95 per liter on kerosene and Rs 2.86 and Rs 25.36 in domestic and international aviation fuel. Meanwhile, NOC bears a loss of Rs 3.74 per liter in petrol, Rs 28.54 in diesel and Rs 16.52 per cylinder in LPG cooking gas.

The price of LPG gas, which has been raised only two times, from Rs 1325 to Rs1350, remains Rs 1375 per cylinder.