KATHMANDU, April 1: Nepal Oil Corporation (NOC) has reported losses of nearly Rs 5 billion over the past 15 days due to surging international petroleum prices triggered by the ongoing conflict in the Middle East.
In a statement, the NOC said the war has disrupted global fuel supply, forcing it to procure petroleum from Indian Oil Corporation at higher rates. However, the automatic fuel pricing system prevented immediate price adjustments, leading to significant financial losses.
NOC Spokesperson Manoj Kumar Thakur warned that continued global price hikes could further increase the corporation’s deficit. Currently, NOC’s Price Stabilization Fund holds Rs 1.9 billion, which has been used to cover the losses so far, but it cannot sustain prolonged deficits.
NOC hikes fuel prices
Despite the losses, the retail prices of petrol, diesel, and LPG remain unchanged to protect consumer interests. However, aviation fuel prices have been revised: domestic aviation fuel now costs Rs 251 per liter, up from Rs 127, while international flights to Kathmandu see prices rise to USD 1,785 per kiloliter, with similar adjustments for Pokhara and Bhairahawa.
NOC assured that the fuel supply across the country remains adequate and urged consumers to use fuel judiciously.
Meanwhile, India has also increased commercial LPG cylinder prices due to higher crude oil costs after disruptions at Gulf refineries. A 19-kg commercial cylinder in Delhi has risen by INR 1,883 to INR 2,078, while a 5-kg cylinder increased by INR 51 to INR 549. Domestic 14.2-kg cylinders remain at INR 913. Aviation turbine fuel (ATF) prices in Delhi have more than doubled to INR 207,341.22 per kiloliter, affecting international flights.
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