Nepal Oil Corporation has hiked the prices of diesel and kerosene by Rs6 per liter.

The new rates came into effect on Friday.

With the revised rate, the price of diesel and kerosene cost Rs178 per litre.

The hike in diesel price means public and cargo transportation fares will also increase as per the auto fare review mechanism.

Despite the price adjustment, the state-owned oil monopoly said it still incurs a loss of Rs11.18 per litre on diesel.

The prices of petrol, aviation fuel and liquefied petroleum gas, however, remain unchanged.

The state oil monopoly said its fortnightly losses, after the price revision, would be Rs300.52 million.

The oil monopoly said in a press statement that it has dues amounting to Rs21 billion to be paid to Indian Oil Corporation, its supplier.