The government on January 18, Wednesday hiked petroleum prices by an average of over 11 percent, burdening the general public with biggest-ever oil price hike in monetary terms in recent history.
Wednesday´s hike in petrol prices has forced the consumers to pay additional Rs 175 — over 13 percent of hike on existing price — per cylinder (14.2 kgs) of liquefied petroleum gas (LPG), the popular household fuel, with immediate effect.
The price-hike also rendered the price of diesel and kerosene expensive by Rs 9 (almost 12 percent) while petrol became dearer by Rs 10 per liter (over 9.5 percent). The price of aviation fuel for domestic airlines too has been increased by Rs 5 per liter.
Consumers will now need to pay Rs 115 per liter of petrol, Rs 85 per liter of diesel and kerosene, Rs 1,500 per cylinder of LPG and Rs 105 per liter of aviation fuel, said Mukunda Dhungel, spokesperson of Nepal Oil Corporation (NOC).
The new retail rates have enabled NOC to enjoy a profit of Rs 3.79 per liter on petrol, Rs 1.73 per liter on kerosene, Rs 17.18 per liter on aviation fuel supplied to domestic airlines and Rs 26.17 per liter on aviation fuel supplied to international airlines.
Despite such profits, NOC said its revenue will not improve as the ministry officials have claimed because the price-hike still has not completely plugged its losses.