Nepal Oil Corporation (NOC) on Friday raised the prices of diesel and kerosene by Rs 1.50 per liter each. The state-owned petroleum monopolist, however, has left the prices of other petroleum products unchanged.
With the fresh revision in prices, diesel and kerosene will now cost consumers Rs 75 per liter each.
NOC board meeting held early in the morning had taken the decision to hike price with instant effect, mainly as the gap between import and local prices continued to widen.
“Even after the hike, we still continue to suffer a loss of Rs 7.95 per liter of diesel,” said NOC Spokesperson Mukunda Dhungel.
However, NOC will earn a profit of 0.62 paisa per liter on kerosene. The corporation is also earning a profit of Rs 2.94 per liter of petrol, which is retailed at Rs 102 per liter, and about Rs 21 per liter of aviation fuel.
“The number of products in which we are profiting has gone up. But sad story is that the volume of these products is so low, when compared with diesel and cooking gas, that their profit simply fail to make up for the loss these two products inflict,” Dhungel told Republica.
NOC suffers a loss of over Rs 260 on every cylinder (14.2 kg) of liquefied petroleum gas (LPG).
The latest hike, nonetheless, helped NOC cut its loss by over Rs 80 million a month. “It has now come down to Rs 505.3 million for the month of August,” stated Dhungel.
Of the total loss, 66 percent is generated from diesel business, while rest comes from LPG.
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