NOC revises fuel prices

KATHMANDU, Nov 3:

Nepal Oil Corporation (NOC) has reduced price of petrol by Rs 2.47 per liter, and diesel and petrol by Rs 1.67 per liter effective from Monday night.

Prices of petroleum products were revised as per the new rates forwarded to NOC by its sole supplier -- Indian Oil Corporation.

With the fresh adjustment in prices, petrol will cost Rs 128 per liter, while kerosene and diesel will be retailed at Rs 101.5 per liter each.

The board meeting of NOC held on Monday revised the prices based on automatic pricing mechanism introduced by the government on September 29. As per the mechanism, fuel prices will be revised every fortnight based on the rates forwarded by IOC.

“We have adjusted the fuel prices as per the new rates forwarded to us by IOC,” Mukunda Ghimire, spokesperson of NOC, told Republica.

NOC was supposed to revise the prices on November. But it failed to do so, saying that it couldn´t get new rates from IOC in time.

With the fresh adjustment in fuel prices, the projected monthly profit of NOC stands at Rs 170 million, according to Ghimire.

FAILURE TO ADJUST FUEL PRICES IN TIME HITS CONSUMERS

Consumers were forced to purchase petrol, diesel and kerosene at higher prices because of the delay in price revision by NOC.
 
IOC had forwarded new rates to IOC on Friday itself. But NOC revised fuel prices on Monday only.

This is the second consecutive time that NOC has failed to adjust fuel prices in time in line with the rates forwarded by IOC.

IOC had reduced price of petrol and diesel in India by IRs 2.41 per liter and Rs 2.25 per liter, respectively, citing price drop in international market.

NOC officials say they couldn´t adjust rates in time as IOC remains closed on Saturday and Sunday. “Though IOC revised prices of petrol and diesel in India on Friday itself, we cannot do anything unless it sends us new rates,” Chandika Prasad Bhatta, managing director of NOC, told Republica.

Meanwhile, consumer rights activists have criticized the government for adopting automatic fuel price mechanism without doing necessary homework. “The mechanism seems to be working at present as oil prices have been falling constantly in the international market," Jyoti Baniya, general secretary of the Forum for Protection of Consumer Rights (FPCR), told Republica, adding “Consumers will suffer once IOC increases fuel price as petrol depots and fuel stations will surely create artificial shortage then.”

Baniya urged the government to introduce effective laws to regulate automatic pricing mechanism. "Only then it should revise fuel prices in line with the prices forwarded by IOC," he added.

Source: Republica