Kathmandu, May 14 : The Nepal government has decided to provide Rs 800 million to state-owned Nepal Oil Corporation (NOC) to ease the supply of petroleum products.
According to Nepalnews, the Government has decided to provide the fuel to the financially bleeding NOC after the latter requested for Rs 2.07 billion subsidy.
As the price of petroleum products has continued to rise in the international market, the NOC has been demanding that either the government provide it with subsidy or the government allow it to raise the fuel price.
Otherwise, the NOC has warned, the supply situation would not be smooth.
The NOC has also increased the price of aviation fuel by 12 per cent. In the domestic aviation side, the price of the aviation fuel has been increased from Rs 80 to Rs 90 per liter. In the international side, the price has been increased from 1180 dollar per one kiloliter to 1330 dollar per kiloliter.
Similarly, the NOC has proposed to make the price of diesel and kerosene the same and to provide a subsidy to the students and marginalised people.
It also recommended limiting the existing state subsidy on cooking gas to one cylinder per family per month. If a family consumes more than one cylinder in a month, it has to get the other cylinders at import price, which will be around Rs 1,430 per cylinder at the existing international price.