IOC reduces prices of diesel by Rs 1.50/L and petrol by 86 paisa/L for Nepal

Kathmandu; Indian Oil Corporation (IOC) has slashed prices of petrol and diesel that it sells to Nepal Oil Corporation (NOC).

According to the NOC, it has received new rates of petroleum products from the Indian oil supplier on Wednesday. In the revised rates which have been effective from Thursday, the cost of petrol declined by 86 paisa per liter, while that of diesel has been slashed by Rs 1.50 per liter.

The NOC officials said that the Indian supplier has reduced the fuel prices citing a drop in crude oil price in the international market. “Oil prices plunged by nearly 5 percent on Wednesday to settle at the lowest levels in more than a year on concerns that a crisis of confidence in the banking sector could trigger a recession and cut demand,” reports Reuters, an international media.

According to Reuters, the crude benchmark hit the lowest level since December 2021 and has fallen for three straight days. The price of crude oil settled down US $3.76, or 4.9 percent lower, at US $73.69 per barrel. 

In the older price that was put to an effect on March 1, the NOC was earning profits of Rs 8 per liter in petrol and Rs 15 per liter in diesel. In the new rates, the fortnightly profit of the state-owned oil monopoly has been estimated to stand at Rs 600 million.