The impact of the Covid-19 pandemic on the global economy also led to low demand for oil. Brent crude futures, the global oil benchmark, were down 22 percent, last week closing at $35.45 per barrel.

General people and airlines operators have been expecting that the biggest fall in crude oil in the international market could cheer the domestic market with big price cuts.

But on Monday, when the Indian Oil Corporation, Nepal’s sole oil trading partner, sent the revised list of oil prices, criticism poured into the oil monopoly for cheating consumers at the time of crisis.

Nepal Oil Corporation reduced the price of petrol, diesel and kerosene by Rs2 per litre and domestic aviation fuel by Rs4.50 per litre, with effect from Monday midnight. After the revision, the oil monopoly said it will boost its fortnightly profit to Rs540 million or more than Rs1 billion monthly.

The corporation clarified that petrol, diesel and kerosene prices are revised fortnightly while aviation fuel and cooking gas is revised on a monthly basis. As a result, the price of aviation fuel sold to international airlines and liquified petroleum gas has remained the same.

Birendra Goit, spokesperson for the corporation, said that in view of struggling domestic airlines, they have reduced the price by Rs4.50 per litre although the prices should be reviewed on a monthly basis. “We have a profit of Rs8 per litre on the fuel sold to the domestic airlines. We take profit of Rs46 on a litre of fuel sold to the international airlines.”

He said that losses on a cooking gas cylinder is at Rs291. But cooking gas new price list will come on April 1 only.

Prem Lal Maharjan, president of National Consumer Forum, said the adjusted price is unnatural and not justifiable. The price of fuel has decreased by more than 25 percent in the international market. But the oil monopoly reduced only Rs2 on a liter. “This is not justifiable. The corporation is exploiting the consumers at the time of a pandemic situation.”

He said that the corporation is not allowed to keep such a big profit.

“Consumers could not feel the presence of the government as they were forced to queue long at petrol pumps on Sunday and Monday despite the government assuring that there is sufficient supply of fuel,” Maharjan told the Post. “Such lack of accountability and responsibility of the government creates mistrust among consumers.”

Bishwamber Pyakurel, an economist, said that the price adjustment of the corporation is a disconnected policy with people.

“Consumers could not feel the impact of decreasing oil prices in the global market as the government’s revenue oriented policy will keep consumers in pain,” he said.

“With the adjusted price, consumers should feel that the government is serving the people. But that’s not happening because the market is run by cartels.”

In a recent interview with the Post, Surendra Kumar Paudel, general manager of Nepal Oil Corporation, had said people need to understand that crude oil is bought and sold internationally in dollars.

“When an Indian company imports crude oil, it needs to pay in dollars,” he said. “As we import fuel from India, and despite a significant fall in crude oil prices over the last five years, the price of petroleum has remained the same due to the appreciation of the US dollar against the Nepali rupee.”