Fuel price to go further up in mid-April

Nepal Oil Corporation (NOC) has hiked the price of petroleum products two times in the month of March. However, NOC, the state-run monopoly in fuel distribution, said that it incurred a loss of Rs 200 million in the same month.

Compared to February, the loss suffered by the NOC in March is 25 percent more. In February, the total loss of the NOC stood at Rs 150 million. The corporation is predicted to bear more loss in April since the price of oil in international market is more or less sure to go further up during the period.
The cost of per barrel oil in international market is currently around US $80. According to the NOC, the prevalent domestic prices of fuel have been fixed on the basis of the international price structure. It is speculated that per barrel oil in international market will surge to US $86 during mid-April.
As such, the likelihood of the domestic price of fuel also going up cannot be ruled out.
Some three weeks back, the NOC increased the price of per liter petrol in Kathmandu valley by Rs 2.50 to Rs 80.25. Similarly, the prices of per liter diesel and kerosene were hiked by Rs 2 each to Rs 61.40.
In the Terai region, customers are paying Rs 1.50 less in petrol, diesel and kerosene each than that of the valley.
The NOC claimed that it was also bound to increase the prices of petroleum products to combat the smuggling of the same to India via porous border between the two countries. According to the NOC, the relatively lower prices of fuel in Indian market have encouraged cross-border smuggling.
The NOC is said to be incurring loss in transaction of petrol, diesel and LP gas while it is accruing profit via the distribution of kerosene and aviation fuel.