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| | {{Fuel Price Factsheet | | {{Fuel Price Factsheet |
| | |Fuel Price Country=Nepal | | |Fuel Price Country=Nepal |
| | + | |Fuel Pricing Policies="Government controls fuel prices and subsidizes diesel and LPG, and at times kerosene. Prices of kerosene and diesel have been equalized since Nov 2008. Kerosene, but not diesel, is exempt from a VAT of 13%, a road maintenance cess of Rs 2 per liter, and a pollution charge of Rs 0.5 per liter. Protests following the fuel price increases on Jan 18, 2012, forced government to reduce prices on Jan 26. To make up for losses, Nepal Oil Corporation (NOC), wholly owned by government, introduced higher diesel prices for bulk and industrial users in Aug 2008 but withdrew dual pricing in Oct 2008. NOC re-introduced dual pricing of diesel in Jan 2012, whereby those consuming more than 4,000 liters a week are charged markedly higher unit prices. In Sep 2012, government announced that students in state colleges would be entitled to price discounts, over and above the subsidies already provided, on four LPG cylinders a year and 10 liters of kerosene a month. In response, students changed the planned one-day strike to protest against price increases on Sep 2 to half-day. NOC posts historical fuel prices going back to 1996, current prices at 13 locations, monthly losses for each fuel per liter and in total, and the price structure for each fuel. In 2012, the highest monthly loss occurred in Apr, amounting to US$19 million." |
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| | + | (Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.) |
| | |Fuel Currency=NPR | | |Fuel Currency=NPR |
| | |Fuel Price Exchange Rate=71.31 | | |Fuel Price Exchange Rate=71.31 |
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| | Source: http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=profitloss | | Source: http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=profitloss |
| − | |Fuel Pricing Policies=The state-owned Nepal Oil Corporation (NOC, http://www.nepaloil.com.np) sets fuel prices in Nepal in accordance with the Nepalese Government. Prices differ across the country, reflecting different transportation costs. Prices are changed several times a year, following the import purchase price from India.
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| − | As of May 2011, NOC has „losses“ of NPR 9.36 (13,3 US-Cents) for every litre of gasoline sold. These losses are de facto subsidies, as the Nepalese Government supports NOC financially (see →App. A1). E.g., debts had to be paid by NOC to the Indian Oil Company in order to continue to receive fuels in July 2010. Th subsidies for diesel are even higher, being NPR 20.72 (29,44 US-Cents) per litre. Also taxation on diesel is low compared to gasoline (NPR 12.42 and NPR 30.9), resulting in a diesel pump price of NPR 68.5 (gasoline: NPR 97.00) as of May 2011. NOC is obviously trying to make these subsidies („losses“) transparent to the customer, showing that prices would be even higher if not subsidized.
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| − | The Nepal Oil website offers further information regarding legal framework, storage facilities and import statistics.
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| | |Fuel Matrix Pricing Mechanism=2 | | |Fuel Matrix Pricing Mechanism=2 |
| | |Fuel Matrix Price Level=3 | | |Fuel Matrix Price Level=3 |
Revision as of 12:38, 22 February 2013
Part of: GIZ International Fuel Price database
Also see: Nepal Energy Situation
Fuel Pricing Policies
| Local Currency:
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NPR
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| Exchange Rate:
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71.31
(2010/11/17)
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| Last Update:
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"Government controls fuel prices and subsidizes diesel and LPG, and at times kerosene. Prices of kerosene and diesel have been equalized since Nov 2008. Kerosene, but not diesel, is exempt from a VAT of 13%, a road maintenance cess of Rs 2 per liter, and a pollution charge of Rs 0.5 per liter. Protests following the fuel price increases on Jan 18, 2012, forced government to reduce prices on Jan 26. To make up for losses, Nepal Oil Corporation (NOC), wholly owned by government, introduced higher diesel prices for bulk and industrial users in Aug 2008 but withdrew dual pricing in Oct 2008. NOC re-introduced dual pricing of diesel in Jan 2012, whereby those consuming more than 4,000 liters a week are charged markedly higher unit prices. In Sep 2012, government announced that students in state colleges would be entitled to price discounts, over and above the subsidies already provided, on four LPG cylinders a year and 10 liters of kerosene a month. In response, students changed the planned one-day strike to protest against price increases on Sep 2 to half-day. NOC posts historical fuel prices going back to 1996, current prices at 13 locations, monthly losses for each fuel per liter and in total, and the price structure for each fuel. In 2012, the highest monthly loss occurred in Apr, amounting to US$19 million."
(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
Fuel Prices and Trends
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Gasoline 95 Octane |
Diesel |
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| in Local Currency |
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* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil
Fuel Price Composition
Price composition for one litre of Gasoline 95 Octane as of 2011/05/01.
- Handling Costs includes transportation and storage (NPR 1.85), technical maintenance (NPR 0.91), service station costs (NPR 1.06), interest expenses (NPR 1.01) and administrative expenses (NPR 0.5).
- Details on fuel taxes and duties are missing yet, only the aggregated value shown is available on Netal Oil website; hints welcome!
Source: http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=profitloss
At a Glance
| Regulation-Price-Matrix
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Transparency of
Price Composition
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Transparency of Pricing
Mechanism / Monitoring
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Sources to the Public
| Type of Information
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Web-Link / Source
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| Other Information
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http://www.nepaloil.com.np
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| Price Composition
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(In Hindi language only)
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| Pump prices and margins
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Contact
Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices
This is a living document. If you have any comments or suggestions, please feel free to contact us:
Armin.Wagner@giz.de
