Nepal hikes oil product prices on higher import costs
Friday, 26 October 2007
KATHMANDU, Oct 25 (AFP): Nepal's state-owned monopoly oil company today hiked prices as much as 22 per cent to meet a rising import bill in the landlocked Himalayan nation that depends on India for all supplies.
"The price of petrol, diesel, kerosene and cooking gas has been increased with effect from Thursday to minimise losses and keep pace with global costs," Icchha Bikram Shah, spokesman at Nepal Oil Corp told the news agency.
The company raised petrol prices by 9.0 per cent, diesel by 5.0 per cent, kerosene by 6.0 per cent and gas used for cooking by 22 per cent.
The price of fuel used by airlines was unchanged.
"The price hike was necessary as we were unable to meet the import costs," Shah said.
Nepal Oil sells fuel products below cost and as a result has recorded average monthly losses of 5.9 million dollars for more than a year. Shah said that even with the price hikes the company would still lose 1.1 million dollars monthly.
"The price of petrol, diesel, kerosene and cooking gas has been increased with effect from Thursday to minimise losses and keep pace with global costs," Icchha Bikram Shah, spokesman at Nepal Oil Corp told the news agency.
The company raised petrol prices by 9.0 per cent, diesel by 5.0 per cent, kerosene by 6.0 per cent and gas used for cooking by 22 per cent.
The price of fuel used by airlines was unchanged.
"The price hike was necessary as we were unable to meet the import costs," Shah said.
Nepal Oil sells fuel products below cost and as a result has recorded average monthly losses of 5.9 million dollars for more than a year. Shah said that even with the price hikes the company would still lose 1.1 million dollars monthly.