Nepal Govt Caps Petrol, Diesel Prices; Only Aviation Fuel Costs Rise Amid Rs 13.5 Billion Loss
The Nepal government has directed the Nepal Oil Corporation (NOC) to hold petrol and diesel prices steady, despite rising costs. As a result, NOC increased only aviation fuel prices based on new costs from Indian Oil Corporation. Aviation fuel prices internally rose by NPR 124 per liter, and internationally by $819 per kilometer for Kathmandu flights. The move maintains a government subsidy but keeps the corporation with a substantial loss of NPR 13.5 billion. Investors should note that stable petrol and diesel prices may ease inflation pressures but rising aviation fuel costs could increase airline ticket prices soon.
- Govt controls reduce petrol, diesel prices, but aviation fuel cost spike keeps losses high at NPR 13.5B.
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The Nepal government has directed the Nepal Oil Corporation (NOC) to hold petrol and diesel prices steady, despite rising costs. As a result, NOC increased only aviation fuel prices based on new costs from Indian Oil Corporation. Aviation fuel prices internally rose by NPR 124 per liter, and internationally by $819 per kilometer for Kathmandu flights. The move maintains a government subsidy but keeps the corporation with a substantial loss of NPR 13.5 billion. Investors should note that stable petrol and diesel prices may ease inflation pressures but rising aviation fuel costs could increase airline ticket prices soon.
Source:bizmandu.com
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