The import price of petroleum products of the country has declined with Indian Oil Corporation (IOC) curtailing the prices of fuels that it supplies to Nepal Oil Corporation (NOC).
According to the NOC, it has received new rates of petroleum products from the Indian oil supplier on Wednesday. As per the revised rates sent by IOC provided to Nepal which have been effective from Thursday, the cost of petrol declined by 86 paisa per liter, while that of diesel has been slashed by Rs 1.50 per liter.
The NOC officials said that the Indian supplier has reduced the fuel prices citing a drop in crude oil price in the international market. “Oil prices plunged by nearly 5 percent on Wednesday to settle at the lowest levels in more than a year on concerns that a crisis of confidence in the banking sector could trigger a recession and cut demand,” reports Reuters, an international media.
According to Reuters, the crude benchmark hit the lowest level since December 2021 and has fallen for three straight days. The price of crude oil settled down to US $3.76, or 4.9 percent lower, at US $73.69 per barrel.
In the earlier price that was put into effect on March 1, the NOC is getting profit of Rs 8 per liter in petrol and Rs 15 per liter in diesel. According to the new rates, the fortnightly profit of the state-owned oil monopoly has been projected at Rs 600 million.
