NOC reduced petrol price by a mere Rs 3 per liter in the past five months while int’l price dropped 28 percent

Kathmandu: Nepal Oil Corporation (NOC) on Friday reduced the domestic prices of petroleum products by nominal rates once in the past five months, although there was a heavy fall in the fuel prices in the international market during the period.

After facing wide criticism by people from various fronts, the state-owned oil monopoly reduced the prices of petrol, diesel and kerosene by a mere Rs 3 per liter. It was the first time in the past five months that the corporation reduced fuel prices.

Last time, on July 4, the NOC increased the price of petrol to Rs 181 per liter and those of diesel and kerosene were fixed at Rs 172 per liter, citing the soaring fuel prices in the international market. Over the period, the price of crude oil dropped to US $80.86 per barrel from around $112 per barrel in the international market.

It shows that the price of fossil fuels lost 27.8 percent in its market price in the past five months. However, the NOC, not only was reluctant to reduce the price, but it raised the price of diesel and kerosene from Rs 172 per liter to Rs 178 per liter.

The NOC claims to be adopting the auto pricing policy since September, 2014. The policy talks about enabling the NOC to revise the domestic fuel price in line with the fluctuation of oil prices in the international market. However, the NOC breaches its own rule amid a hefty fall in oil prices.

While the NOC is often blamed for charging exorbitant prices from the general people, it has been showing its outstanding dues that it owes to the government and the Indian Oil Corporation for not reducing the prices. According to the NOC, it is still left to clear dues worth Rs 19 billion.