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Prices Of Petroleum Products In Nepal
BY KTM Metro Reporter
March 22, 2012: Nepalis and Indian officials have started off talking to reach a new deal on the prices of petroleum products, as the five-year deal is expiring on March 31, 2012, Singapore (Platts) reports on March 21, 2012. Prices of petroleum products might increase in Nepal, as the state-run Indian Oil Corporation is proposing to increase the marketing margin from the current 2.5% to 5%. Nepalese officials insist on keeping the percentage of the marketing margin as it is.
Following the new price structure sent by the Indian Oil Corporation (IOC) recently, the Nepal Oil Corporation (NOC) is likely to bear a loss of about Rs. 1.342 billion during this month (March), ‘The Rising Nepal’ writes.
Based on the new price structure, the Corporation would make a loss of Rs. 14.03 per liter of diesel and Rs. 563.40 per cylinder of cooking gas. However, NOC would make profit of Rs. 0.26 per liter of petrol, Rs.1.26 per liter of kerosene and Rs. 20.30 per liter of Air Turbine Fuel, ‘The Rising Nepal’ writes.
NOC has not been able to supply the petroleum products causing the huge loss of business to the Nepalis. The government has only alternative to make NOC able to supply the petroleum products smoothly to the people is to increase the prices of petroleum products complying with the international prices of these products. However, the opposition parties make use of such action through their students to take the petroleum product price rises to the streets and force the government to roll back the price increase. The opposition leaders have no concern for the billions of rupees worth of the business losses caused by the short supply of petroleum products. Thanks to the opposition politicians indulging in the unwise politics, Nepalis have to bear the brunt of the losses of the business opportunity.
