In a move that will bring relief to consumers across the country, the state-owned Nepal Oil Corporation (NOC) has significantly slashed the prices of petrol, diesel, and kerosene. This adjustment reflects shifts in global oil prices and aims to pass the benefits directly to the consumers.
The price cut, effective from 1 August 2024, is a result of a decrease in the international crude oil prices and adjustments in the price received from the Indian Oil Corporation (IOC), NOC’s sole supplier.
The corporation has also announced that the prices of cooking gas cylinders and aviation turbine fuel will remain unchanged.
Details of the Price Adjustment:
- Petrol Prices: The price of petrol has seen a reduction ranging from Rs 1 to Rs 7 per litre, depending on the location and category.
- Diesel and Kerosene Prices: Diesel and kerosene prices have been reduced by Rs 1 to Rs 5 per litre, mirroring the petrol price adjustments.
The New Prices:
- Kathmandu, Pokhara, and Dipayal: Petrol at Rs 170 per litre, diesel and kerosene at Rs 158 per litre.
- Surkhet and Dang: Petrol at Rs 169 per litre, diesel and kerosene at Rs 157 per litre.
- Charali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi, and Birgunj: Petrol at Rs 167.50 per litre, diesel and kerosene at Rs 158 per litre.
Prices vary slightly between different regions, reflecting logistical costs and regional economic conditions. For example, petrol prices in major cities like Kathmandu, Pokhara, and Dipayal are slightly higher compared to border areas.
The Impact on Consumers and the Economy
This reduction in fuel prices is expected to lower the cost of living for many, as transportation costs significantly influence the prices of goods and services. Consumers in urban areas like Kathmandu, Pokhara, and Dipayal, as well as those in more remote locations like Surkhet, Dang, and the Terai regions, will feel some relief as a result of these cuts.
The decrease in fuel prices could potentially stimulate economic activities by reducing the operating costs for businesses, especially in sectors heavily reliant on transportation and logistics. This price reduction might also help curb inflationary pressures that have been a concern in recent times.
Conclusion:
The Nepal Oil Corporation’s recent price reduction is a significant development in Nepal’s economic landscape, with far-reaching effects on both consumers and businesses. As global oil prices continue to fluctuate, NOC’s adaptive pricing mechanism ensures that the benefits are passed on to the Nepalese public, supporting broader economic stability and growth.
This decision not only aids in managing the cost of living but also aligns with broader economic strategies to ensure sustainable growth in Nepal’s transitioning economy.
