NOC Hikes Petrol, Diesel Prices; LPG Rate Unchanged

The Nepal Oil Corporation (NOC) has increased the retail price of petroleum products, raising the price of petrol by Rs 15 per litre and diesel and kerosene by Rs 10 per litre with effect from Monday.

Despite the revision, the adjustment is less than half of the increase in procurement prices set by the Indian Oil Corporation (IOC). According to the latest price list sent by the IOC, NOC’s purchase price of petrol has risen by Rs 31 per litre, while diesel has become costlier by Rs 54 per litre.

Following the new revision, petrol will be sold at Rs 169.5 per litre in first-category districts, Rs 171 in second-category districts and Rs 172 in third-category districts.

Similarly, the price of diesel and kerosene has been fixed at Rs 149.50 per litre in the first category, Rs 151 in the second category and Rs 152 in the third category.

NOC has classified depots in Charali, Biratnagar, Janakpur, Amlekhgunj, Bhalbari, Nepalgunj, Dhangadhi and Birgunj under the first category. The Dang depot is placed in the second category, while Kathmandu, Pokhara and Dipayal depots are categorized under the third group.

The state-owned fuel supplier said in a statement that it used resources from the Price Stabilization Fund to absorb a significant portion of the increased procurement cost in order to limit the burden on consumers.

Although the procurement price of liquefied petroleum gas (LPG) has gone up by Rs 216 per cylinder, the corporation has decided not to raise the retail price of cooking gas.

According to NOC, escalating geopolitical tensions in West Asia and the ongoing Russia-Ukraine war have pushed up crude oil prices in the international market, resulting in higher import costs.

Amid the latest price adjustment, the corporation expects to continue incurring heavy losses. NOC estimates that it will face a loss of about Rs 3.93 billion over the next 15 days as fuel is still being sold below the import cost set by the IOC.