Nepal Oil Corporation (NOC) reversed a recent petroleum price hike after public outcry and government intervention.
Initially, NOC raised prices, including Rs. 2 per liter for petrol and Rs. 6 per liter for diesel and kerosene. LPG saw a Rs. 215 per cylinder increase.
Nepal Oil Corporation’s move to implement automatic pricing in the current financial year to reduce losses has seen an unexpected rise in cost prices. With the corporation’s discount halt, gas prices surge, burdening consumers with higher costs.
Despite the corporation’s insistence on non-profitability, the government collects 17% of revenue from each gas cylinder through a 356 NPR tax. This sum is earmarked for the price stabilization fund, raising concerns about financial transparency within the industry.