Kathmandu – In a bid to streamline pricing and ensure transparency, the Nepal Oil Corporation (NOC) has announced the implementation of an automatic price system for petroleum products. The decision was made by the corporation’s board of directors, with the new system set to take effect from Sunday midnight.

Under the automatic price system, the NOC will determine the prices by incorporating a profit margin of 2 percent on diesel and 2.5 percent on petrol. Notably, the corporation has decided not to generate profits from the pricing of liquefied petroleum (LP) gas used for cooking purposes.

Madhukumar Marasini, Chairman of the NOC’s board of directors and Secretary of Commerce and Supply, explained, “With the implementation of the automatic price system, when the cost of crude oil rises, the selling price of petroleum products also increases.”

According to the latest announcement by the corporation, the prices of petrol, diesel, kerosene, and cooking gas have decreased. Petrol prices will witness a reduction of Rs 6 per liter, while diesel and kerosene prices will each see a decrease of Rs 4 per liter. Furthermore, the cost of LP gas cylinders will be reduced by Rs 10.

In the Kathmandu Valley, petrol will now be priced at Rs 164 per liter. In Terai districts, it will cost Rs 161.50, and in inner Madhesh, the price will be Rs 163 per liter. Similarly, diesel and kerosene will be sold at Rs 146 per liter in the valley, Rs 143.50 in Terai districts, and Rs 145 per liter in Madhes.

The price of an LP gas cylinder has been reduced from Rs 1800 to Rs 1790.

Notably, aviation fuel prices will not be determined automatically. Executive Director Umesh Prasad Thani clarified that the prices will be set in accordance with the regulations established by the NOC’s board of directors.

Taking into account the variation in border prices, petrol in Birganj will be Rs 13.27 cheaper per liter compared to Raxaul in India. Similarly, kerosene and diesel will be cheaper by 9.94 paisa per liter.

The NOC emphasized that domestic fuel prices will be comparatively lower by 23.81, while prices for imported fuel will be slightly higher.

The implementation of the automatic price system by the Nepal Oil Corporation aims to ensure fair pricing and align with market dynamics, benefiting consumers across the country.