Government and corporation have no role in petrol price hike: Oil Corporation

Nepal Oil Corporation has made it clear that it will not play any role in increasing the price of petroleum products. Managing Director of the Corporation Surendra Kumar Poudel said that the Government of Nepal and the Oil Corporation would not play a major role in increasing the prices of petroleum products including petrol and diesel. 

 

The corporation clarified that the pricing of the oil to be sold will be done by changing the price at the source. Poudel said the dollar rate, rising crude oil prices and transportation costs would reduce the price of petroleum products. 

 

He said that the issue of covering the internal expenses and management expenses of the corporation was not linked with the price as reported in the news. He also said that there is no need to increase the price of petroleum products to cover the expenses of the corporation. He said that since prices fluctuate naturally, they should be increased when prices increase and decrease when they decrease. 

 

'Our costing resources are never expensive. Everyone should understand that we have not bought at a high price. The corporation does not have to sell petroleum products till today for the expenses of the corporation and staff expenses. It also comes from other sources of the corporation. The government and the corporation do not have a big role in increasing the price and it has increased naturally, 'he said.

 

He also said that the Nepal Oil Corporation (NOC) has increased its sales even after the price hike. He said that if the price rise continues for a long time, there may be a need to adjust the prices of large levels. 

 

"If this inflation continues for such a long time, we will come to a point where we have to adjust the price at a big level," he said. 
The corporation has fixed the price of petrol at Rs 116 per liter, diesel and kerosene at Rs 99 per liter, and LP gas at Rs 1,400 per liter.