Nepal Oil Corporation has reduced the prices of petroleum products by Rs10 per litre. The new prices will come into effect from midnight, Thursday.

As per the instruction of the Ministry of Industry, Commerce and Supplies to slash the prices of petroleum products by Rs10, equivalent to the infrastructure tax per litre, the oil monopoly decided to reduce the prices of petrol, diesel and kerosene.

With the new adjustment, petrol will cost Rs170 per litre, and diesel and kerosene Rs153 per litre each. The prices of aviation fuel and liquefied petroleum gas [cooking gas], however, remain unchanged.

Meanwhile, in an attempt to reduce the loss in the trade of liquefied petroleum gas, the corporation has formed a committee comprised of its officials and representatives of stakeholders to make recommendations for determining different prices for household and commercial users, according to the corporation.

The Cabinet meeting on May 24 agreed to readjust the taxes on petroleum products also on the basis of the price difference on the border with India.

The corporation had on May 22 hiked the prices of petrol, diesel and kerosene by Rs10 per litre each, taking the prices to Rs180 for petrol and Rs 163 for diesel and petrol, while the price of cooking gas was increased by Rs200 per cylinder to Rs1,800.

The corporation has incurred a loss of Rs47 billion by mid-May of the current fiscal year and is predicted to suffer a loss of Rs60 billion by the end of the current fiscal year ending in mid-June, according to the press statement by the corporation.