Kathmandu, Feb. 3: The price of petrol, diesel and kerosene reached an all-time high in the country.
The Nepal Oil Corporation (NOC) has fixed the price of petrol at Rs. 142 per litre and diesel and kerosene at Rs. 125 per litre each with effect from Tuesday midnight.
The NOC has increased the price of petrol, diesel and kerosene by Rs. 3 per litre each.

The Corporation has increased the price of aviation fuel for domestic flight by Rs. 10 per litre to Rs. 116 and international flight by USD 100 per kiloliter to USD 1,095, according to a press statement of NOC.
The NOC has not adjusted the price of liquefied petroleum gas (LPG).

The NOC has revised the prices of petrol, diesel, kerosene and aviation fuel citing that the price of fuel has increased in the international market significantly
Fuel price was adjusted based on the new price structure received from the Indian Oil Corporation (IOC) on February 1, said Binitmani Upadhyay, spokesperson at the NOC.

Earlier on March 14, 2014, the price of petrol reached Rs. 140 per litre but had remained lower since then. But now, that record has been broken after eight years. Diesel and kerosene was priced at Rs. 109 per litre at that time.
As per the latest price received from IOC on Tuesday, petrol price has been hiked by Rs. 4.92 per litre, diesel by Rs. 7.24 per litre, kerosene by Rs. 8.80 per litre and aviation fuel by Rs. 7.48 per litre.
"However, despite heavy losses, we have slightly increased the price of petrol, diesel, kerosene and aviation fuel," Upadhyay said.

"This time the price of LPG has been cut by Rs. 81.62 per cylinder, the Corporation still has a loss of Rs. 560.9 per cylinder so we have kept the price unchanged," he said.
"As the dollar is stronger in the international market the price of crude oil is also rising in the international market. This has increased the price of petroleum and NOC is compelled to increase the cost," he said.
International crude oil prices rose steadily around to USD 90 a barrel, he said.

NOC faces fortnightly loss of Rs. 2.23 billion
Despite adjusting the prices of petroleum products in the domestic market, the Corporation's losses have not been reduced.
Spokesperson Upadhyay said that the rise in the price of petroleum products in the world market and the rise in the exchange rate of the US dollar have added challenges to reduce loss of the Corporation over the months.
Even after price adjustment, the Corporation incurs a loss of around Rs. 2.23 billion in the sale of petroleum products in 15 days, he said.
It still faces a loss of Rs. 13.23 per litre in petrol and Rs. 11.13 per litre in diesel.

However, the NOC is making a profit of Rs. 18.12 per litre in kerosene, Rs. 10.50 per litre in aviation fuel for domestic flights and Rs. 32.72 per litre for international flights.
The NOC claimed that it will face a loss of Rs. 430 million in sale of petrol, Rs. 1.01 billion in sale of diesel and Rs. 1 billion in sale of cooking gas in 15 days. 

NOC forced to take loan for fuel supply
Despite the price adjustment, the Corporation has to take a monthly loan up to Rs. 5 billion to repay the Indian Oil Corporation for the smooth supply of petroleum products in the country, said Upadhyay.
The Corporation had paid the IOC last month after seeking assistance from the government after all the savings were spent on the purchase of petroleum products.
It had already used Rs. 1.80 billion from the price stabilisation fund under the government to pay for IOC last month.

Cheaper in Nepal than in India
The Corporation has said that the price of petroleum products is cheaper in Nepal than in the bordering Indian region.
Compared to Raxaul in the Indian market, petrol is cheaper by Rs. 32.24 per litre and diesel by Rs. 50.56 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.