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Increasing Prices Of Kerosene And Diesel
By KTM Metro Reporter
June 20, 2012: Nepal Oil Corporation has increased the prices of kerosene and diesel each by Rs 4 per liter effective on Tuesday, June 19, 2012; the corporation will make a reduced loss of Rs 130 million from a projected loss of Rs 380 million after the price adjustment, as the corporation will make a profit of Rs. 8.45 per liter in the sale of kerosene and a loss of Rs. 1.20 per liter in the sale of diesel, ‘The Rising Nepal’ of today writes.
With the new price adjustment, NOC sells diesel and kerosene at Rs. 89 per liter, and has been selling petrol at Rs. 120 per liter since the last price adjustment a month ago.
The corporation has been selling kerosene at a loss believing it will give the poor to some relief, as kerosene is believed to be the poor person’s fuel for cooking, and the diesel, too at a loss believing to keep the transport cost low.
With the rise in the prices of kerosene and diesel, the NOC will be able to make regular payment to the Indian Oil Corporation (IOC) for uninterrupted supply of petroleum products. The IOC stops supplying petroleum products to the NOC as soon as the NOC stops paying the dues.
The rise in price of diesel will certainly increase the transportation fare set by the syndicate of transport operators. The cost of transpiration has been so high not because of the high price of diesel but because of the cartelization. The government needs to break up the syndicate and make the transportation business competitive.
