Fuel price hike 15 times in one year, Corporation still at loss

KATHMANDU: Nepal Oil Corporation has increased the price of petroleum products 15 times in the current fiscal year. The price of petroleum products had seen a change of a total of 18 times and the price had dropped three times. Even after increasing the price 15 times a year, the corporation has not stopped claiming that it is still at a loss.

The price of petrol has been fixed at Rs 129  and diesel and kerosene at Rs 112 per litre with effect from Tuesday night. The price of aviation fuel has been increased by Rs 2 per litre on Tuesday. Similarly, the international price has increased by USD 19 per making it USD 754 per 1000 litres

The price of cooking gas has also increased by Rs 25 and now stands at Rs 1,425 per cylinder. The corporation has said that it has to bear a fortnightly loss of Rs 910 million even after the price hike. Earlier, the fortnightly deficit was Rs 650 million, but the deficit has increased after the price hike. In the previous period, sales of petroleum products were low due to the prohibitory orders.

Even with the price hike on Tuesday, the corporation will have a fortnightly deficit in petroleum products. Earlier, the corporation had a loss of Rs 650 million in 15 days. Sales of petroleum products were low and losses were low due to the previous changes in price.

Surendra Kumar Poudel, executive director of the corporation, says that the price of petroleum products in Nepal has increased on the basis of the world market price. Poudel said that the price of petroleum products has continued to rise due to the value of the dollar, revenue and the price of raw materials in the international market. 

“Nepal Oil Corporation has not done business. We are a body like the Department of Customs. Poudel told Nepal Press “ The business is being done by petrol pumps. We fix the price sent by the Indian Oil Corporation.” According to Poudel, the corporation has incurred a fortnightly loss of Rs 70 million on petrol, Rs 40 million on diesel, Rs 210 million on kerosene, Rs 30 million on LP gas and Rs 160 million on aviation turbine fuel.

When did the price of petroleum products go up?

For the first time, the price of petrol had gone up from Rs 102 per litre to Rs 104 per litre and diesel and kerosene from Rs 88 to Rs 90 per litre.

The price of petrol rose from Rs 102 per litre to Rs 105 per litre and diesel and kerosene from Rs 90 to Rs 91 per litre.

In the second month of the current fiscal year, the price of petrol rose from Rs 105 per litre to Rs 107 per litre. At that time, the prices of diesel, kerosene, gas and aviation fuel remained the same.

After that, the price went up only on December 12. Petrol, diesel and kerosene prices had surged on December 12. The prices of gas and aviation fuel remained unchanged. After two months, the price of petrol had increased from Rs 107 to Rs 108. Similarly, diesel and kerosene prices rose from Rs 89 to Rs 90 per litre.

During the COVID period, the government did not raise prices for a few months to provide some relief to consumers of petroleum products. Simultaneously, the price adjustment was made on 16th August 2020. Out of which, petrol, which was Rs 108 per litre, rose to Rs 110. Diesel and kerosene prices rose from Rs 91 per litre to Rs 93 per litre. At that time, the price of gas and aviation fuel remained the same.

Petrol, diesel, kerosene and cooking gas prices were hiked on 16th February 2021. At that time, the price of petrol was Rs 110 to Rs 112 per litre. Diesel and kerosene prices rose from Rs 93 per litre to Rs 95 per litre At that time, cooking gas had reached Rs 1,400 per cylinder.

Petrol price was hiked by Rs 2 per litre to Rs 114 per litre on 19th March. Similarly, diesel and kerosene prices were hiked by Rs 2 per litre to Rs 97 per litre. At that time, the price of aviation fuel had increased from Rs 65 per litre to Rs 67 per litre.

Petrol price was hiked by Rs 2 per litre making it  Rs 116 per litre on 16th February. Similarly, diesel and kerosene prices were hiked by Rs 2 per litre making it  Rs 99 per litre. At that time, the price of aviation fuel had gone up from Rs 67 per litre to Rs 72 per litre.

The price of petrol was increased by Rs. 2 per litre to Rs. 118 per litre on 16th March. The new price of diesel and kerosene was Rs 101 per litre. Similarly, the price of domestic aviation fuel was increased by Rs 2 per litre to Rs 74. At that time, the price of international aviation fuel remained the same.

The price of petrol had gone up by Rs 2 per litre to Rs 120 per litre on 4th April 2020. Diesel and kerosene prices were hiked by Rs 2 per litre to Rs 103 per litre. On the 4th of April, the price of domestic and international aviation fuel remained unchanged.

The price of petrol saw an increase by Rs 1 per litre to Rs 121 per litre on 17th April 2021. The price of diesel and kerosene was increased by Rs 1.1 per litre to Rs 103 per litre. Petrol price was hiked by Rs 1 per litre and diesel and kerosene by Rs 2 per litre on  16th May. The new price of petrol was set at Rs 123 per litre and diesel and kerosene at Rs 106 per litre. Similarly, the price of domestic aviation fuel increased by Rs 2 to Rs 78.

The price of petrol, diesel, kerosene and domestic aviation fuel rose by Rs. 2 on 5th June. Petrol was priced at Rs 125, diesel and kerosene at Rs 108 and domestic aviation fuel at Rs 80 per litre.

The price of petrol, diesel, kerosene and domestic aviation fuel had an increase by Rs 2 on 23rd June. According to the new price, petrol was priced at Rs 127, diesel and kerosene at Rs 110 and domestic aviation fuel at Rs 82 per litre. The price of international aviation fuel rose from USD 715 per kg to USD 735.

The price of all petroleum products went up for the last time on 6th July last year. Petrol, diesel and kerosene prices have gone up by Rs 2 per litre. Similarly, the gas price has been increased by Rs 25 per cylinder, domestic aviation fuel by Rs 2 and international aviation fuel by  USD19. The price of petrol saw an increase to Rs 129, diesel and kerosene to Rs 112, gas to Rs 1,425 per cylinder, domestic aviation fuel to Rs 84 per litre and international aviation fuel to USD 754 per kilolitre.

How many times has the price dropped?

Prices of petrol, gas and aviation fuel remained unchanged on 16th  September 2020. The prices of diesel and kerosene have come down. Diesel and kerosene were decreased from Rs 91 per litre to Rs 90 per litre.

Similarly, the prices of petrol and aviation fuel remained unchanged on 1st October 2020. At that time, diesel and kerosene had a decrease from Rs 90 per litre to Rs 89 per litre.

The price of international aviation fuel was USD 715 per kg on 5th June. Earlier, the price was USD 893 per kiloliter, but the price has dropped to USD 178 per kiloliter.

How much tax does the government charge?

The corporation should pay Rs 25.20  customs duty, Rs 0.025 customs service fee, Rs 4 road maintenance fee and Rs 1.50 pollution fee, Rs 10 infrastructure tax and Rs 12. 65 added tax on 1 litre of petrol. Consumers are now paying Rs 54.47 per litre of tax to the government when they buy a litre of petrol.

The government levies a tax of Rs 37 on diesel. Consumers have to pay Rs 12 customs tax, Rs 0.025 customs service fee, Rs 2 road maintenance fee, Rs 10.69 VAT when buying 1 litre of diesel.

Consumers have been paying Rs 0.15  interest on inventory of petrol, Rs 0.68 for administrative expenses of the corporation, Rs 0.12 for technical loss of the corporation, Rs1.72 for depreciation expenses and Rs 4.57for various expenses of the corporation. Due to the fact that all these charges are taken from the consumers, the purchase of cheap petroleum products by the corporation has become expensive.

Cheaper in Nepal than in India!

Petroleum products are cheaper in Nepal than in India. As the price of oil is cheaper in Nepal than in India, oil is smuggled from Nepal to India. In Raxaul, India, petrol costs Rs 164.19 per litre. In Nepal’s Birgunj, the price is Rs 127.50. There is a difference of Rs 36.69 across the border. Petrol imported from India is 36.59 percent cheaper in Nepal than in India.

Similarly, diesel is cheaper in Nepal than in India. In India, the price is Rs 153.94 per litre. In Nepal, the price is Rs 110.50 per litre. It is Rs 43.44 per litre cheaper in Nepal than in India.

How is oil imported from India cheaper?

In India, oil prices are more expensive than in Nepal because of the federal government as well as the provincial governments. In Nepal, only the central government levies taxes on petroleum products. The corporation says that the overhead rate is lower in Nepal than in India.