Fuel prices reach all-time high in Nepal

Kathmandu [Nepal], February 2 (ANI): The price of petroleum products has reached an all-time high in Nepal as the state-owned petroleum supplier increased the price from midnight owing to the losses incurring from the sales.
Nepal Oil Corporation (NOC) issued a press release that announced an increase in prices of Petrol, Diesel and Kerosene by 3 Nepali rupees per litre which went into effect from midnight. With the new adjustments, a litre of petrol in Nepal would now cost 142 rupees, Diesel and Kerosene would cost 125 rupees a litre.
Earlier on March 14, 2014, the NOC had hiked the fuel price to 140 rupees per litre and had remained low since then.
"As the dollar is stronger in the International market the price of crude oil is also rising in the international market. This has upshot the price of petroleum and NOC is compelled to increase the cost," Binitmani Upadhyay, Spokesperson at the state-owned petroleum supplier told ANI over the phone.
Nepal Oil Corporation has been updating the price of petroleum after it gets the revised rate from Indian Oil Corporation every fortnight. As per the latest release of NOC the last revised rate sent by IOC has made price adjustment by 4 rupees 92 paisa per litre in Petrol, 7 rupees 24 paisa per litre in Diesel and 8 rupees 80 paisa per litre in Kerosene.
Likewise, aviation fuel also has become dearer by 7 rupees 48 paisa. Despite the increment in the price of petroleum, the NOC has stated that it still would be losing 2 Billion 23 Crores in the next 15 days. "Weakening Nepali currency against the USD also has resulted in the increasing loss and rising petro price. In 2014 when the price of petrol stood at 140 rupees per litre, per barrel cost of crude oil stood at 108 dollars and Nepali rupees stood at 98 rupees against a dollar," the official said.
Currently, the price of a barrel of crude oil stands at 90 Dollars in the international market but the value of USD in comparison to Nepali rupees stands at One hundred and 19 rupees 97 paisa.
Apart from it, the tax imposed by the government also has been making the price of petroleum dearer. NOC has been purchasing petrol from IOC at 84 rupees 32 paisa per litre but adds on 58.48 rupees as tax shooting up the price.
Likewise, IOC provides NOC diesel at 85 rupees 42 paisa which later is imposed with a tax of 41 rupees 16 paisa per litre. Later the state supplier finalizes the price of petroleum adding on operational charges and profits further increasing the price.
As per the NOC officials, the loss of the government entity stands at 19 billion Nepali rupees and has been covering the debts and losses by taking loans. (ANI)