The Nepal Oil Corporation (NOC) on Sunday announced the reduction in retail prices for petroleum products, with the state-owned oil monopoly cutting the price of liquefied petroleum gas (LPG) probably for the first time.
It has reduced Rs35 on the price of LPG per cylinder, which will now retails for Rs1,435.
The revised price means the enterprise will make a profit of Rs1.15 per cylinder after incurring losses in LPG sales for years. The NOC incurred its biggest loss yet of Rs1,043 per cylinder in January 2013.
The NOC has also cut Rs2.50 on the prices for petrol, diesel, kerosene. After the latest revision, petrol now costs Rs106.50 a litre, while diesel and kerosene costs Rs84 a litre.
Similarly, the corporation has also reduced the price of aviation fuel for both the domestic and international flights. It has slashed fuel price by Rs15 a litre for domestic flights which will now retail for Rs118 a litre. The fuel price for international flight has been reduced by $75 per kilolitre to $1,325.
In its last revision five months ago, the NOC had reduced the price of aviation fuel for the domestic flights by Rs10 per litre and did not cut down the price of fuel for the international flights. The airlines entrepreneurs have long been mounting pressure on the corporation to reduce the price of aviation fuel for the international flights.
NOC spokesperson Mukunda Ghimire said the decision to reduce the fuel prices was in the line with the new prices quoted by its sole supplier—the Indian Oil Corporation.
The price of crude oil on Sunday dropped 2.06 percent in the international market to $52.21 per barrel, according to Reuters.
With the revised price, the NOC estimates to make a profit of Rs1.7 billion for this month. Since adopting the auto-pricing system on petrol, diesel and aviation fuel on September 29, 2014, the NOC has witnessed a dramatic turnaround in its fortune, posting a profit of Rs18 billion in the last fiscal after losses in five consecutive years.
Petro price revision
Fuel type Previous price New price
Petrol Rs109/ltr Rs106.50/ltr
Diesel Rs86.50/ltr Rs84/ltr
Kerosene Rs86.50/ltr Rs84/ltr
Aviation fuel (domestic) Rs133/ltr Rs118/ltr
Aviation fuel (international) $1,400/kl $1,325/kl
LPG (cooking gas) Rs1,470/cylinder Rs1,435/cylinder