Nepal Oil Corporation raises fuel prices to curb rising losses

The Nepal Oil Corporation has adjusted the prices of petroleum products in an effort to control growing financial losses.

Under the new pricing structure, which came into effect from midnight, petrol has increased by Rs 17 per litre and diesel by Rs 25 per litre.

According to the revised rates, petrol will now cost Rs 216.50 in the first category, Rs 218.00 in the second, and Rs 219.00 in the third. Diesel prices have been fixed at Rs 204.50, Rs 206.00, and Rs 207.00 respectively across the three categories.

The price of liquefied petroleum gas (LPG) has also been increased by Rs 100 per cylinder.

Despite the hike, the corporation said it is still incurring losses of Rs 16.65 per litre on petrol, Rs 109.50 per litre on diesel, and Rs 416.37 per LPG cylinder.

According to the corporation, even after adjustments in customs duties and infrastructure development taxes, it continues to face a bi-weekly loss of around Rs 10.21 billion.