Nepal Oil Corporation (NOC) has increased the prices of petrol, diesel, and kerosene by Rs 15 per liter each, citing the ongoing conflict in the Middle East and rising international fuel prices.
The revised rates will come into effect from midnight Thursday.
The state-owned oil monopoly stated that the price hike was necessary due to the लगातार rise in global petroleum prices and a sharp increase in purchase costs imposed by Indian Oil Corporation (IOC). According to NOC, the automatic pricing mechanism was unable to withstand the pressure, making the adjustment unavoidable.
NOC also warned that growing financial losses could hinder its ability to make timely payments to IOC, potentially disrupting the country’s fuel supply chain.
Based on fuel prices received from IOC on March 16 and March 31, the corporation recorded a biweekly loss of Rs 13.21 billion. It said that despite drawing from the Price Stabilization Fund, prices were increased by only Rs 15 per liter to minimize the burden on consumers.
However, even after the hike, NOC continues to operate at a loss. The corporation reported losses of Rs 34.36 per liter on petrol, Rs 120.54 per liter on diesel, and Rs 416.37 per cylinder on LP gas.
Following the latest adjustment, NOC estimates a continued biweekly loss of Rs 11.71 billion. The corporation has urged consumers to use fuel sparingly, given the challenging global market conditions.
