Kathmandu, Oct. 2: Nepal Oil Corporation (NOC) has withdrawn the price hike of petroleum products in less than 24 hours it decided to increase it thanks to public pressure.

According to the NOC, it has withdrawn the decision to hike the price effective from Sunday midnight following a direction from Prime Minister Pushpa Kamal Dahal ‘Prachanda’. 

On Saturday, the NOC had decided to increase the prices of petroleum products effective from Saturday midnight.

But on Sunday, the government directed the Corporation to reduce the price after the Corporation was heavily criticised for increasing the prices just a few weeks before Dashain. 

According to spokesperson for NOC Manoj Kumar Thakur, the Corporation has decided to withdraw the decision to hike the price without making any change in the automatic price system. “The current increase will be adjusted from the price stabilisation fund and the amount received from the government of Nepal,” he added.

“We have withdrawn the decision at the instructions of the government in order to provide relief to the consumers during the festivals,” he told The Rising Nepal.

The Corporation had increased prices of petroleum products, including cooking gas, according to the auto pricing system.

The NOC had increased the price of petrol by Rs. 2 per litre, diesel and kerosene by Rs. 6 per litre each and liquefied petroleum gas by Rs. 215 per cylinder.

Similarly, it had increased the price of aviation fuel by Rs. 8 per litre for both domestic and international flights.

After the new decision, a litre of petrol will cost Rs. 180.5 in 

the first category, Rs. 182 in the second category and Rs. 183 in the third category.

Similarly, the price of diesel and kerosene will now be Rs. 170.5 per litre in the first category, Rs. 172 per litre in the second and Rs. 173 per litre in the third category. 

The price of cooking gas has come down to Rs. 1,895 per cylinder from Rs. 2110, said the NOC.

Thakur said that the NOC will face a loss of Rs. 210 million in 15 days while selling petroleum products at the old rate.

The NOC will face a loss of Rs. 2 per litre in the sale of diesel, Rs. 5 per litre in aviation fuel and Rs. 182 per cylinder of cooking gas.

However, the NOC will make a profit of Rs. 2 per litre in the sale of petrol.

After the re-implementation of the automatic pricing system on petroleum products from July 16, 2023, NOC adjusted fuel prices six times by Saturday. 

On July 16, 2023, the cost of petrol was Rs. 164 per litre while diesel and kerosene cost Rs. 146 each. The price of cooking gas was Rs. 1,790 per cylinder.