Nepal Oil Corporation hikes fuel prices, yet financial losses persist

Kathmandu. The Nepal Oil Corporation (NOC) has significantly increased the prices of diesel, kerosene, and aviation fuel. Despite this sharp hike that burdens consumers, the corporation's losses are expected to continue. Following the price adjustment effective from Thursday, the NOC is projected to face a loss of approximately 5.75 billion rupees over the next 15 days.

The NOC issued a statement on Wednesday announcing the new prices, effective from midnight on Baisakh 3, Thursday. Under the new price list, the cost of diesel and kerosene has been increased by 30 rupees per liter, while petrol prices remain unchanged. Additionally, the price of domestic aviation fuel has been raised by 5 rupees per liter.

Diesel and kerosene prices increased by 30 rupees

Following the adjustment, the retail price of diesel and kerosene in the first category of regions has been set at 234 rupees and 50 paisa per liter. Similarly, prices have reached 236 rupees in the second category and 237 rupees per liter in the third category. The NOC stated that the price of domestic aviation fuel has also increased from 251 rupees to 256 rupees per liter.

According to the NOC, even after this price adjustment, the corporation still incurs a loss of 99 rupees and 16 paisa per liter on diesel alone. 

The NOC attributed the price hike to the rising cost of crude oil in the international market. In its statement, the corporation noted that it was compelled to adjust prices due to the continuous rise in petroleum costs caused by ongoing conflicts in the Middle East and the increased purchase price list received from the Indian Oil Corporation (IOC) on April 15.