Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Oil Corporation has increased the prices of पेट्रोल, डिजेल, and मट्टितेल for the second time within two weeks, citing a projected biweekly loss of around Rs 15 billion driven by rising international oil prices amid escalating tensions in the Middle East.
The निगम’s board decided to raise prices by Rs 15 per liter across petrol, diesel, and kerosene. The revised rates came into effect from Wednesday night, deviating from the usual bi-monthly adjustment cycle based on pricing updates from Indian Oil Corporation.
Under the new pricing structure, petrol will be sold at Rs 184.50 per liter in the first category, Rs 186 in the second, and Rs 187 in the third. Similarly, diesel and kerosene prices have been fixed at Rs 164 per liter in the first category, Rs 166 in the second, and Rs 167 in the third category.
According to NOC Executive Director Chandika Bhatt, the निगम was compelled to revise prices mid-cycle due to mounting financial pressure and expectations of further steep hikes in the upcoming price list from India.
“Future price lists from India are expected to be significantly higher. Given our existing losses, we had no option but to adjust prices now. Petrol prices could rise by as much as Rs 45 per liter and diesel by Rs 89 per liter in the coming days. A sudden adjustment of that magnitude is not feasible, so we opted for a gradual increase,” Bhatt stated.
The corporation estimates that, based on current projections, it could incur losses of up to Rs 15 billion every two weeks if prices are not adjusted accordingly.
Global oil prices have been on an upward trajectory over the past month due to ongoing geopolitical conflict in the Middle East, disrupting supply chains and pushing up crude prices. The automatic pricing mechanism in Nepal, which relies heavily on imports from Indian Oil Corporation, has struggled to keep pace with rapid international fluctuations, further widening the financial gap for the state-owned sup
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