The government has cut fuel price by slashing taxes on petroleum products.
Minister for Industry, Commerce and Supplies Dilendra Prasad Badu organizing a press conference on Saturday has announced the decision to cut price of petrol by Rs 20 per liter and diesel/kerosene oil by Rs 29 per liter effective from Saturday midnight.
Petrol will now be sold at Rs 179 per liter and diesel/kerosene oil at Rs 163 per liter.
The ruling coalition earlier on Saturday instructed the government to reduce price of petroleum products.
The coalition's meeting at Baluwatar Saturday morning instructed the government to cut taxes on petroleum products, according to Ramesh Malla, personal secretary of CPN (Maoist Center) Chairman Pushpa Kamal Dahal. Malla added that the decision will be implemented from Saturday itself.
The meeting of Industry, Commerce, Labor and Consumers Rights Committee of the House of Representatives on Friday had also instructed the Government of Nepal, the Finance Ministry, the Ministry of Industry, Commerce and Supplies and the Nepal Oil Corporation (NOC) to cut taxes collected in different heads by 50 percent.
The government currently levies Rs 65.61 per liter in petrol and Rs 49.53 in diesel in different kinds of taxes. The government similarly collects Rs 320.84 in every cylinder of cooking gas.
The NOC raised price of petrol by Rs 21 per liter and diesel/kerosene oil by Rs 27 per liter effective from Sunday midnight. The state petroleum monopoly claims it suffers a loss of Rs 13.58 in every liter even while selling petrol at Rs 199.
The House committee on Monday had instructed the government to find measures to minimize the impact of rise in fuel prices on commoners. The market monitoring sub-committee formed under the committee accordingly held a discussion with NOC officials on Friday.
(*The price of diesel/kerosene oil has been cut by Rs 29 per liter and not Rs 28 as earlier reported. The error is regretted.)
