Fuel prices up, again

The Nepal Oil Corporation on Sunday hiked the prices of all petroleum products, a week after the last increment. The new rates will come into effect on Monday.

With the revised rate, the price of petrol will cost Rs180 per litre, from the earlier Rs170.

Despite the hike, the state-owned fuel monopoly said it still suffers a loss of Rs14.64 per litre in petrol.

Similarly, the price of diesel and kerosene has been hiked by Rs10 to Rs163 per litre each.

The loss in diesel is Rs26.82 per litre, the corporation said in a statement. However, the corporation enjoys a profit of Rs22.11 on a litre of kerosene.

The corporation has also hiked the prices of liquefied petroleum gas. A cooking gas cylinder now costs Rs1,800, from the earlier Rs1,600.

Likewise, the corporation has jacked up aviation fuel prices sold to the domestic carriers by Rs10 per litre, which will now cost Rs166 per litre.

The state oil monopoly said its fortnightly losses, after the price revision, would be Rs3.35 billion, indicating another hike soon.

The oil monopoly said in a press statement that out of the Rs43 billion amount that it needs to pay its supplier—Indian Oil Corporation, by May, only Rs20.60 billion has been cleared so far due to cash shortage. It owes Rs22.40 billion in dues to the Indian Oil Corporation.

Nepal Oil Corporation had declared itself bankrupt in January despite hiking fuel prices to near-record levels.

The high cost of fuel is digging deeper into consumers' pockets, and the monthly consumer price inflation climbed to its highest level of 7.28 percent in the first nine months of the current fiscal year that ended in mid-April.

The transport and airline industry may increase the ticket rates 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 Kathmandu Post