Kathmandu- Prices of petrol, diesel and kerosene have gone up by Rs 2 per liter each. Issuing a statement on Monday, the Nepal Oil Corporation (NOC) said that it decided to raise the retail prices of petrol, diesel and kerosene in line with the revision in the price list forwarded by the Indian Oil Corporation (IOC) – the sole supplier of petroleum products to Nepal.
With the fresh hike in the price that will come into effect from Monday midnight, petrol will cost Rs 109 per liter, while diesel and kerosene each will retail at Rs 97 per liter.
The NOC increased the prices of petrol, diesel and kerosene nearly three months after lowering their price. Earlier on September 10, the NOC had lowered the price of petrol, diesel and kerosene by Rs 2 each, coinciding with the formal launch of the India-Nepal cross border petroleum pipeline (Motihari-Amlekhgunj).
The reduction was also due to drop in the prices of petroleum products in international market, savings from the supply of fuel through the newly inaugurated Nepal-India cross-border pipeline and fluctuation in foreign currency exchange, according to the NOC.
Again on September 20, the NOC had slashed the price of liquefied petroleum (LP) gas by Rs 25 to Rs 1,350 per cylinder. Similarly, it had also lowered the price of ATF by US$ 50 to $1,000 per kiloliter as an incentive for international airlines on the eve of Visit Nepal Year 2020 campaign.
The reduction in ATF price had come in the wake of growing complaints from airlines companies that the fuel in Nepal was very expensive and that it could have an adverse impact on Nepal’s tourism promotion.
NOC officials say that the price has been revised upward as per the automatic price mechanism put in place four years ago.
The upward revision is also likely to put pressure on inflation which is already on a rising trend for last few years. If the rise in the price of petroleum products causes a spike in transportation costs, the inflation is likely to go up further, according to economists.
According to the Nepal Rastra Bank, the average inflation of first three months of the current fiscal year stood at 6.4% compared to the government’s target of containing it below 6%.