Nepal Oil jacks up fuel prices to record levelThe prices of petrol and diesel have reached Rs199 per litre and Rs192 per litre, respectively.
Nepal Oil Corporation has increased the prices of petrol by a steep Rs21 per liter and diesel and kerosene by Rs27 per litre.
This is the highest increment ever made by the oil monopoly.
The revised rate came into effect on Monday.
With the revised rate, the price of petrol will cost Rs199 per litre, diesel Rs192 per litre and kerosene Rs192 per litre.
Similarly, the corporation has increased aviation fuel sold to domestic airlines by Rs19 per liter to Rs185 per liter. For the international airlines, fuel price has been increased by $100 per kiloliter to Rs$1,645 per kiloliter.
The price of liquefied petroleum gas remains unchanged.
The oil monopoly said that it hiked the prices of petroleum products in line with the international market.
The corporation said it has been facing an extreme financial crisis.
Its due amount to be paid to Indian Oil Corporation for the purchase of petroleum products would reach Rs22 billion by June 23.
Despite the hike, the corporation will be facing a monthly loss of around Rs4.70 billion. The accumulated losses have been expected to reach Rs55 billion by June end.
The corporation said that it is facing a loss of Rs2.28 billion in liquefied petroleum gas business.
Brent crude oil price reached $113.32 per barrel on Monday, according to media reports.
Rising oil prices is a major factor fuelling inflation that is biting everyone.
According to Nepal Rastra Bank, the year-on-year consumer price inflation jumped to a staggering 7.87 percent in May, hitting a 69-month high. It was 3.65 percent in May last year.