Govt reduces fuel prices

KATHMANDU, Nov 24:

Nepal Oil Corporation (NOC) has reduced price of petrol by Rs 2.5 per liter and diesel and kerosene by Rs 2 per liter.

The meeting of Board of Directors (BODs) of NOC held on Monday evening took the decision. The new prices will come into effect from Tuesday morning.

The fresh adjustment in fuel price means petrol will now cost Rs 125.5 per liter. Similarly, diesel and kerosene will be retailed at Rs 99.5 per liter each.

As per the automatic pricing mechanism adopted by the government on September, NOC revise fuel prices every fortnight based on price rates forwarded by its sole supplier -- Indian Oil Corporation (IOC). Though IOC had raised the new rates on November 16, it took NOC more than a week to adjust fuel prices.
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"We have been finding difficulty in adjusting fuel prices in time as most of our board members remains outside the Kathmandu Valley. We cannot adjust prices without getting our BoD´s nod," Mukunda Ghimire, spokesperson of NOC, told Republica.
With the new adjustment, NOC´s projected monthly profit has reached Rs 180 million, said Ghimire.

SOurce: Republica