Despite price hike, corporation incurred a loss of Rs 3.89 billion in 15 days

KATHMANDU: Due to an insufficient amount to pay instalment to Indian Oil Corporation, Nepal Oil Corporation (NOC) has raised the price of petroleum products (IOC). With effect from today, the corporation’s board of directors has increased the price of petrol by Rs 8 per liter and diesel/kerosene by Rs 12 per liter.

The retail price of petrol has risen to Rs 178 per liter, while diesel/kerosene has risen to Rs 165 per liter as a result of the price increase. The corporation has not raised the price of cooking LP gas or aviation fuel. As of Wednesday, the corporation had yet to pay the IOC more than Rs 20 billion. The corporation has been paying the IOC for the purchase of petroleum products on the 8th and 23rd of every English month.

Binit Mani Upadhyaya, the corporation’s spokesperson, stated that the price had to be raised due to the high price of petroleum products in the international market and the IOC’s arrears. Last week, the corporation reduced the retail price of petrol, diesel, and kerosene by Rs 10 per liter. The corporation claims that even after price adjustments, it has been running a fortnightly deficit of Rs. 3.89 billion.