NOC hikes price of petro products

Citing its mounting losses, the Nepal Oil Corporation (NOC) on Wednesday raised the prices of petroleum products.

Unveiling the new rates, NOC increased the price of petrol by 6 rupees per litre, diesel by 2 rupees and kerosene by 3 rupees per litre and LP gas by 200 rupees per cylinder.

The new retail price of per litre of petrol, diesel and kerosene has been fixed at 73 rupees, 56.86 rupees and 51 rupees respectively while a LPG cylinder will cost 1100 rupees.

According to reports, now the NOC's loss has come down to Rs 4 per liter for diesel, Rs 2 for kerosene and Rs 70 per cylinder for cooking gas, while the corporation would earn a profit of about Rs 2 per liter of petrol.

At present, Indian Oil Corporation (IOC) has reduced the supply to about 1,000 kiloliters a day as against a normal daily requirement of 2,000 kiloliters, demanding that NOC clear past dues and take oil for cash.

The NOC data shows that it has about Rs 5 billion in dues to IOC. Likewise, it has paid merely half the monthly import bill for October.

An official at NOC said that following the price hike decision IOC has committed to supply as much as NOC demands.

Meanwhile, the student groups associated with communist parties, transport entrepreneurs, consumers and various other groups on Thursday staged protests in various part of the capital against the price hike by the NOC. Similarly, the Maoist-affiliated student wing All Nepal National Independent Student Union (Revolutionary) organised 1 hour long (2pm-3pm)  strike (Chakka Jam) in Kathmandu  on Thursday.