By A Staff Reporter
Kathmandu, Oct. 31: Nepal Oil Corporation, the state-owned monopoly petroleum supplier, has increased the price of the petroleum products effective from Friday midnight.
The NOC has revised the prices of petrol, diesel, kerosene, aviation fuel and cooking gas citing that price of fuel has increased in the international market significantly.
The NOC has increased the price of petrol, diesel and kerosene by Rs. 3 per litre each and price of aviation fuel for domestic flight has increased by Rs. 10 per litre.

Fuel price was adjusted based on the new price structure received from the Indian Oil Corporation (IOC) on October 16, according to a press statement of NOC.
The NOC receives new price list from IOC twice a month.

As per the latest revised rate, petrol costs Rs. 133 per litre, diesel and kerosene cost Rs. 116 per litre each and aviation fuel (domestic flight) costs Rs. 96 per litre.
Similarly, the price of aviation fuel (international flights) has been increased to USD 853 per kiloliter, NOC said. The NOC has also increased the price of liquefied petroleum gas (LPG) by Rs. 50 per cylinder to Rs. 1,500.
Earlier, the NOC had increased the price of petrol, diesel and kerosene by Rs. 2 per litre and LPG by Rs. 25 per cylinder on August 23, 2021.

"Even after adjusting the fuel price, the NOC still faces a loss of Rs. 12.55 per litre in petrol and Rs. 11.67 per litre in diesel. The NOC is also bearing a loss of Rs. 1.87 billion in 15 days through the sale of all petroleum products, including the cooking gas, he said.

NOC is facing a loss of Rs. 461.22 per cylinder of cooking gas, NOC said. The NOC claimed that it will face a loss of Rs. 338 million in sale of petrol, Rs. 898 million in sale of diesel and Rs. 682 million in sale of cooking gas in 15 days.
Before adjusting the fuel price, the NOC had estimated a fortnightly loss of Rs. 2.22 billion from the sale of fuel price.

The Corporation has stated that it will be forced to increase the price of fuel in the coming days as the price of petroleum products is skyrocketing in the international market.
Even after price adjustment, petroleum price is still cheaper in Nepal than in India, NOC said.
Compared to Raxaul in the Indian market, petrol is cheaper by Rs. 45.82 per litre and diesel by Rs. 49.73 per litre. As the price of petroleum products has become cheaper in Nepal, the possibility of smuggling fuel to India from the border areas has increased, it said.