The projected daily loss of Nepal Oil Corporation (NOC) in its oil business has fallen to Rs10 million compared to its previous Rs16.7 million after receiving the revised price list from Indian Oil Corporation (IOC).

As per the state oil monopoly, it will be maintaining current fuel prices this time despite racking up losses. Currently, petrol costs Rs110 per litre while diesel and kerosene are available for Rs93 per litre each.

 NOC has set up a price stabilisation fund. As per the Petroleum Products Auto Pricing System Bylaw, the enterprise will be able to account for fluctuations in the price of petroleum product via this fund. NOC’s Acting Managing Director Sushil Bhattarai said the enterprise’s projected loss has come down to Rs301 million from Rs500 million per month. “NOC will finally get some respite this time thanks to the new the price lists sent by IOC on Wednesday,” Bhattarai said.

As per the reviewed price, NOC maintains profit in petrol, kerosene and aviation fuel.

NOC will receive a profit of 87 paisa per litre in petrol while the loss in diesel stands at Rs1.14 per litre. However, the enterprise’s loss in cooking gas has escalated by Rs46.46 per cylinder and now loses Rs280.64 per cylinder.

Despite soaring losses in the cooking gas business, NOC has kept the fuel price unchanged.

Last month saw prices of petroleum products falling, with the cost of Brent Crude oil coming down to $74.25 per barrel from around $78.70 per barrel.

An uptick in the supply of crude oil from the US led to an increased global supply, taking down the fuel price in the world’s market, according to international media reports.

“Last month, Brent fell by more than 6 percent and US crude slumped about 7 percent, the biggest monthly declines for both benchmarks since July 2016,” reads Reuters.

In its press statement, NOC has mentioned that the country has been facing a growing threat of fuel smuggling due to the variation in price of the fuel at bordering markets

of India and Nepal. According to the enterprise, petrol is cheaper by Rs23.22 per litre in Nepal compared to Indian market. Similarly, price of diesel in Nepali abordering market is lesser by Rs25.39 per litre than in India.