Price of petroleum products hiked again in a week

The Nepal Oil Corporation, state owned petroleum products supply company, hiked the prices of all petroleum products, a week after the last increment. The new rates will come into effect on Monday May 23.

According to the revised rate, the price of petrol will cost Rs180 per litre, from the earlier Rs170.Similarly, the price of diesel and kerosene has been hiked by Rs10 to Rs163 per litre each.

Despite the hike, the NOC states that it is still suffering a loss of Rs14.64 per litre in petrol. The loss in diesel is Rs26.82 per litre, the corporation states. On the other side, the corporation gets a profit of Rs22.11 on a litre of kerosene. The corporation has also hiked the prices of liquefied petroleum gas (LPG). A cooking gas cylinder now costs Rs1,800 from the earlier Rs1,600.

NOC has hiked aviation fuel prices sold to the domestic carriers by Rs10 per litre, which will now cost Rs166 per litre. The transport and airline industry may increase the fares as per the auto pricing mechanism. Since this month, the government has allowed transport operators to revise fares if the fuel price fluctuates by Rs5 per litre. The state owned fuel monopoly said its fortnightly losses, after the price revision, would be Rs3.35 billion. It also hinted yet another price hike soon. Nepal Oil Corporation was declared itself as bankrupt in last January. It was in loss despite hiking fuel prices to near-record levels.