Kathmandu, June 19
While the prices of the petroleum products have been going down in the international market, the Nepal Oil Corporation (NOC) has increased the prices of diesel and kerosene by Rs.4 each effective from Tuesday.
With the increment in the prices, diesel and kerosene now cost Rs. 93 in the Kathmandu Valley.
However, prices of cooking gas and aviation fuel have remained unchanged. Cooking gas is priced at Rs.1,415 per cylinder, while the aviation fuel is sold for Rs.109 per litre.
Citing the reason for the revision of the fuel prices, NOC officials said that they have done so in order to make the supply of the petroleum products smooth across the country.
Sushil Bhattarai, deputy director of the NOC, however, said that the corporation has revised the prices of diesel in order to make the supply of the fuel smooth.
Even after increasing the prices diesel, the corporation faces a loss of Rs.1.20 per litre of diesel, he said.
According to him, with the revision of prices of diesel and kerosene, the corporation’s losses will be decreased to Rs. 130 million from a projected loss of Rs.380 million as per the price structure received from the IOC on June 16.
With the new price structure, the corporation will make a profit of Rs. 8.45 per litre in kerosene and suffers a loss of Rs. 1.20 per litre in diesel.
“It was necessary for us to increase the fuel prices for a regular supply. As we could not pay dues to the Indian Oil Corporation (IOC) on time, it would reduce the supply of fuels,” he said.
Recently, the IOC had cut the supply of fuels by almost 75 per cent owing to an increase in its dues, he said and added that the supply of diesel could not ease in the market even after paying the dues to the IOC.
He assured that the supply of diesel will be eased forever in the market if its prices of remains the same in the international market.
He said that the corporation increased the prices of kerosene considering the possibility of adulteration.
The corporation has been distributing cooking gas by facing huge losses, he said.
It is necessary to readjust the prices of cooking gas in order to reduce loss, he said.
About two months back, the government had increased the prices of petrol, diesel and kerosene by Rs. 4 each. The price of petrol was Rs. 120 per litre and diesel and kerosene was Rs. 89 per litre.