The Nepal Oil Corporation (NOC) has announced a reduction in the prices of petrol, diesel, and kerosene, effective from Saturday. The move comes as a result of lower import costs from India, the primary supplier of petroleum products to Nepal.
According to the NOC, the price of petrol has been slashed by Rs. 3 per liter, while diesel and kerosene prices have been reduced by Rs. 1 per liter. This adjustment comes despite the government's recent introduction of a green tax of Rs. 1 per liter on petroleum products through the budget.
In the Kathmandu Valley, the price of petrol now stands at Rs. 168 per liter, while diesel and kerosene are priced at Rs. 153 per liter. The prices of aviation fuel and liquefied petroleum (LP) gas, however, remain unchanged.
The NOC's decision to decrease fuel prices is expected to provide much-needed relief to consumers, who have been grappling with rising living costs amid economic challenges. The reduced prices are also anticipated to have a positive impact on transportation and logistics sectors, potentially leading to lower costs for goods and services.
While the government's green tax aimed to promote environmental sustainability, the lower import costs from India have offset the impact on consumer prices. This highlights Nepal's continued reliance on imported petroleum products and the importance of maintaining favorable trade relations with its neighboring countries.
