January 9: Nepal Oil Corporation (NOC) has reduced the prices of petroleum products effective from Monday (January 9).

The state-owned oil monopoly has slashed the prices of petrol, diesel and kerosene by Rs 3 per litre upon the instruction of newly-formed government led by Pushpa Kamal Dahal.

The NOC has also reduced the price of aviation turbine fuel (ATF).

Prime Minister Dahal had instructed the NOC board and the Ministry of Industry, Commerce and Supplies on Thursday to lower the prices of petroleum products.

The NOC was adamant that it would not lower the prices of petroleum products arguing that its accumulated losses were in billions. However, it took a U-turn after the directive from the government.

After the reduction in fuel prices,  the price of petrol now stands at Rs 175 per litre. Likewise, diesel and kerosene will now cost Rs 172 per litre.

Similarly, the price of ATF for domestic flights has been reduced by Rs 20 per litre and is fixed at Rs 170 per litre. The NOC said that it has lowered the price of aviation fuel for international flights by Rs 30 per litre. According to the NOC, the price of ATF for international flights has been fixed at US$ 1.420 per litre.

The price of cooking gas (liquefied petroleum gas) remains unchanged.

Issuing a statement on Sunday, NOC said it owes a total of Rs 18 billion to the Indian Oil Corporation and the Government of Nepal.