The Nepal Oil Corporation has increased the price of petrol by Re1 per litre and the aviation fuel (domestic) by Rs2 per litre.

According to the NOC, the new prices will be effective after midnight on Saturday.

Consumers will now have to pay Rs160 per litre for petrol in Kathmandu, Pokhara and Dipayal. They have to pay Rs159 for petrol per litre in Surkhet and Dang and it will cost Rs157.50 for petrol in Charaali, Biratnagar, Janakpur, Amlekhgunj, Bhalwari, Nepalgunj, Dhangadhi and Birgunj.

In Nepal, the corporation sets the rates based on the tariff it receives from its sole supplier Indian Oil Corporation.

Indian Oil Corporation reviews export prices of petrol and diesel/kerosene every fortnight and of other products such as aviation fuel and LPG on a monthly basis.

According to the NOC, the Indian Oil Corporation, while sending the new rate to the Nepali utility, increased the rates by 58 paisa per litre for petrol, 18 paisa per litre for diesel and Rs1.74 per litre for kerosene. Similarly, the IOC has hiked the price of Rs1.35 per litre in aviation fuel, Rs14.49 per cylinder in LP gas.

After receiving the revised prices from the IOC, the NOC held a meeting and decided to increase the price of petrol by Rs1 per litre. While the price of diesel and kerosene has remained unchanged, and the price of aviation fuel has been increased by Rs2 per litre (domestic). The aviation fuel price has been increased by US$15 per kilo litre in Kathmandu whereas it has been fixed at the break even point in Pokhara and Bhairahawa.