Fuel prices rise again, NOC still at a loss

    Indian Oil Corporation (IOC) has increase fuel prices to Nepal. The Nepal Oil Corporation (NOC) said in a statement on Sunday that the IOC had sent a new price. The corporation has not mentioned in the press release how much the new price has been sent.

    Similarly, even though India has sent a new price list, the corporation has not yet informed whether the price of fuel in Nepal will be manipulated or not.

    According to the release, the corporation is expected to incur a loss of around Rs 5.19 billion in the next 15 days as soon as the IOC sends the new price.

    According to the price list sent by the IOC, the corporation is expected to incur a loss of Rs 23.02 per liter on petrol and Rs 40.13 per liter on diesel. At present, petrol is being sold at Rs 160 per liter and diesel at Rs 143 per liter.

    According to the new price on April 3, the corporation will have to pay Rs 183.02 for petrol and Rs 183.13 for diesel.

    Gas pipeline, sprasa media

    Similarly, LP gas, which is being sold at Rs 1,600 per cylinder, will cause a loss of Rs 1,018.18 to the corporation. The purchase cost of gas is Rs 2650.18.

    The corporation has seen a higher loss in petrol and diesel prices on Sunday than the previous IOC sent on Baisakh 18. Similarly, the deficit in LP gas has also increased.

    The corporation has profit in kerosene and aviation fuel. The corporation has earned Rs 2.81 per liter for kerosene, Rs 12.64 per liter for aviation fuel and Rs 64.69 per liter for external fuel.

    Profits of kerosene and aviation fuel have also declined compared to Baisakh 18. Now the purchase price of kerosene is Rs 140.19, aviation fuel is Rs 143.36 internally and Rs 123 externally. It is mentioned in the release that it is Rs.

    As per the price of Baisakh 18, the corporation was expected to incur a loss of around Rs 3.74 billion in 15 days. With the new price coming up on Sunday, April 3, the deficit is expected to exceed Rs 5 billion.

    Russia’s invasion of Ukraine has had a major impact on international oil markets. As the price of crude oil has risen, so has the price of petrol and other fuels. Oil Corporation, on the other hand, was already running at a loss. Therefore, the price of fuel in the Nepali market is increasing in a short time.

    Oil Corporation does not buy crude oil from the international market itself. It has been procuring all kinds of refined petroleum products from IOC. In this way, the IOC sends the price to the Oil Corporation on fortnightly every month for the purchase of petroleum.

    The price shipped by the IOC is based on the cost of crude oil it buys from the international market. The IOC sets the selling price for Nepal by adding mining costs, including its processing fee, to the cost price.

    Gas pipeline, sprasa media

    The Oil Corporation then fixes the consumer price by adding the customs duty, customs costs, transportation cost and dealer commission to the government for importing petroleum. This determines the price of petrol, diesel, kerosene and cooking LP gas we buy.

    The biggest factor determining the price of petroleum in this process is the price of crude oil that the IOC buys from the international market.

    Gas pipeline, sprasa media

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