July 17: Nepal Oil Corporation(NOC) has implemented an automatic pricing system for petroleum products. The board meeting of the NOC held on Sunday passed the Automatic Pricing Procedure 2080.

As per the meeting of the Board of Directors, the corporation will not keep any profit on cooking gas (LPG). The board has decided to sell diesel with a profit margin of 2% and petrol with a profit margin 2.5%.

The price of petroleum products was slashed as per the automatic pricing system as the Indian Oil Corporation has sent the price list with price adjustment.

The corporation has reduced the price of petrol by Rs 6 per liter. Starting from Sunday midnight, petrol will be available in Kathmandu at Rs 164 per liter. However, in the districts of Tarai and Inner Madhes, petrol will be priced at Rs 161.50 and Rs 163, respectively.

The price of diesel and kerosene has been reduced by Rs 4 per liter. According to the new prices, one liter of diesel/kerosene will be available in Kathmandu at Rs 146. In the districts of Tarai, the price of both fuels will be available at Rs 143.50, and in Inner Madhes, it will be Rs 145.

The price of cooking gas has been reduced by Rs 10 per cylinder, and fixed at Rs 1,790.

According to the Chairman of Board of Directors at Nepal Oil Corporations and Secretary at the Ministry of Commerce and Supplies, Madhukumar Marasini, after the implementation of the automatic pricing system, when the cost increases, the selling price also increases, and when the cost decreases, the selling price decreases.

The Executive Director of the Corporation, Umesh Prasad Thani, however, said that price of aviation fuel will not be automatically adjusted.  According to him, the price of aviation fuel will be determined by the NOC Board of Directors.

According to the NOC, petrol will be cheaper in Birgunj than in Raxaul, India, by Rs 13.27 per liter. Kerosene and diesel will be cheaper by Rs 9.94 per liter.