The increase in fuel prices is not in the interest of consumers

It is said that Nepal Oil Corporation has adjusted consumer prices in the Nepali market in order to take advantage of the decrease in the price of crude oil in the external market. It seems that Nepal Oil Corporation has reduced fuel prices accordingly on October 28, 2080 after the Indian Oil Corporation reduced the price in accordance with the reduced rate in the external market.

It is said that the price of petrol has been reduced from Rs 182.5 per liter to Rs 172 per liter through government subsidies. In the face of the festival, it seems that the price has been adjusted by keeping the procedures related to the automatic price system in consideration of the interests of the common consumers. It is said that while adjusting the price in the procedure, it is arranged to determine the selling price by adding 2.5 percent profit per liter of petrol and 2 percent per liter of diesel to the purchase cost. This time, it is said that no profit was kept while adjusting the price.

This time, it is said that no profit was kept while adjusting the price. However, it seems surprising why it is necessary to take subsidy from the government to change the price when there is no profit.

But even though the corporation did not make a profit this time, in the past it was making a huge profit by showing automatic procedures. Because of this, the corporation has earned about 2.5 billion profit in only three months of the year 2080-81.

How did the price of fuel fluctuate in five years from 2074-75 to 2079-80? It seems that the price of fuel has reached the highest point in the history of Nepal. The Nepal Oil Corporation, which has been determining the price of fuel, had set the price of petrol at Rs 181 per liter until June 20, 2079. However, in August 2080, it again exceeded 181 and reached 182.5.

In this way, Nepal should purchase fuel at the price that will be maintained on the basis of supply and demand in the world market. Since then, the price of fuel has been continuously rising. In addition to this, the ever-increasing value of the US dollar also plays a role in increasing the price of fuel in the Nepalese market. When purchasing the price of crude oil in the foreign market, which is denominated in dollars, the payment must be made in dollars. Because of this, the price of fuel is increasing as the dollar continues to become more expensive and the Nepalese currency continues to weaken.

Nepal Oil Corporation has been saying that there will be a loss after the price increase in the world market. At some point, the price has been increased up to three times in a month, but between June and July, despite India reducing the price of fuel for Nepal three times, the Nepal Oil Corporation has not reduced the price of fuel.