Nepal Oil Corporation (NOC) has reduced price of liquefied petroleum gas (LPG) by Rs 35 to Rs 1,435 per cylinder.
This is the first adjustment in price of the popular cooking fuel in the past five years.
Similarly, NOC also reduced price of petrol, diesel and kerosene by Rs 2.5 per liter each. Now petrol will cost Rs 106.5 per liter, while diesel and kerosene will sell for Rs 84 per liter each.
Mukunda Ghimire, spokesperson of NOC, said fuel price has been adjusted after a gap of three months. “In this period, price of crude oil has dropped to US$ 53 per barrel from $61.
With the fresh adjustment, NOC makes profit of Rs 1.15 per cylinder of LPG. According to Ghimire, NOC’s projected profit for the month of August stands at Rs 850 million.
NOC made profit of Rs 18 billion in the last fiscal year, according to unaudited financial report of the state-owned petroleum monopolist, due to sharp drop in price of petroleum products in the international market.
Though NOC had adopted automatic fuel pricing mechanism in September last year, it had not adjusted fuel price in the last three months after the devastating earthquake rocked the country. As per the mechanism, NOC has to adjust fuel prices based on the price forwarded by Indian Oil Corporation (IOC). IOC forwards rates of petroleum products to NOC every fortnight.
The Indian government had slashed price of petrol and diesel by IRs 2.43 per liter and IRs 3.60 per liter, respectively, effective from Saturday.