Difference between revisions of "Fuel Prices Nepal"

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{{Fuel Price Factsheet
 
{{Fuel Price Factsheet
 
|Fuel Price Country=Nepal
 
|Fuel Price Country=Nepal
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|Fuel Pricing Policies="Pricing policy: 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 (US$0.02)/liter, and a pollution charge of Rs 0.5/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 early 2011, following a government decision, NOC began providing subsidized diesel to factories and hotels, offering a discount of Rs 1.80 (US$0.02)/liter. On Feb 12, 2013, NOC raised the price of LPG by 43%, but after meeting with various student unions rolled back the price increase on Feb 24, citing lack of preparation of color-coded cylinders and consumer cards. Retail prices of diesel in Kathmandu and benchmark FOB prices relevant to Nepal since 2007 are shown below. The plot shows that the largest subsidies were provided in 2008. 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. This discount program has not been implemented.
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Consequences of subsidies: NOC has been reporting large monthly losses, reaching as high as US$18 million in Jan 2012. In recent months, losses have been dominated by underpricing of LPG. In Dec 2012, NOC proposed a new subsidy mechanism for LPG, which would limit price subsidies to households only who would be entitled to one 14.2-kg cylinder a month at the subsidized price, and deliver the subsidy through a post-purchase cash refund. LPG cylinders for households would be colored red, and other cylinders blue, in addition to households receiving red cards and all other consumers blue cards.
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Protests: Protests against fuel price hikes by students are common.
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Information: 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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|Fuel Price Composition Fuel Type=Gasoline 95 Octane
 
|Fuel Price Composition Fuel Type=Gasoline 95 Octane
 
|Fuel Price Composition Date=2011/05/01
 
|Fuel Price Composition Date=2011/05/01
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|Fuel Price Composition Annotation=* „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)
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|Fuel Price Composition Annotation=*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).
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*Details on fuel taxes and duties are missing yet, only the aggregated value shown is available on Netal Oil website; hints welcome!
 
*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
 
Source: http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=profitloss
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|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.
 
 
|Fuel Matrix Pricing Mechanism=2
 
|Fuel Matrix Pricing Mechanism=2
 
|Fuel Matrix Price Level=3
 
|Fuel Matrix Price Level=3
 
|Fuel Transparency Price Composition=3
 
|Fuel Transparency Price Composition=3
 
|Fuel Transparency Pricing Mechanism=3
 
|Fuel Transparency Pricing Mechanism=3
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}}
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}} {{Fuel Price Factsheet Source
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{{Fuel Price Factsheet Source
 
 
|Fuel Price Factsheet Source Type=Pump prices and margins
 
|Fuel Price Factsheet Source Type=Pump prices and margins
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=sellingprice
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=sellingprice
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}}
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}} {{Fuel Price Factsheet Source
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{{Fuel Price Factsheet Source
 
 
|Fuel Price Factsheet Source Type=Pump prices and margins
 
|Fuel Price Factsheet Source Type=Pump prices and margins
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=previoussellingprice
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=previoussellingprice
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}}
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}} {{Fuel Price Factsheet Source
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{{Fuel Price Factsheet Source
 
 
|Fuel Price Factsheet Source Type=Price Composition
 
|Fuel Price Factsheet Source Type=Price Composition
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=profitloss
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=profitloss
 
|Fuel Price Factsheet Source Annotation=In Hindi language only
 
|Fuel Price Factsheet Source Annotation=In Hindi language only
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}}
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}} {{Fuel Price Factsheet Source
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{{Fuel Price Factsheet Source
 
 
|Fuel Price Factsheet Source Type=Other Information
 
|Fuel Price Factsheet Source Type=Other Information
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np
 
|Fuel Price Factsheet Source Link=http://www.nepaloil.com.np
 
}}
 
}}
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[[Category:Nepal]]

Latest revision as of 16:11, 15 July 2014

Part of: GIZ International Fuel Price database
Also see: Nepal Energy Situation

Fuel Pricing Policies

Local Currency: NPR
Exchange Rate: 71.31


(2010/11/17)

Last Update:

"Pricing policy: 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 (US$0.02)/liter, and a pollution charge of Rs 0.5/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 early 2011, following a government decision, NOC began providing subsidized diesel to factories and hotels, offering a discount of Rs 1.80 (US$0.02)/liter. On Feb 12, 2013, NOC raised the price of LPG by 43%, but after meeting with various student unions rolled back the price increase on Feb 24, citing lack of preparation of color-coded cylinders and consumer cards. Retail prices of diesel in Kathmandu and benchmark FOB prices relevant to Nepal since 2007 are shown below. The plot shows that the largest subsidies were provided in 2008. 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. This discount program has not been implemented.

Consequences of subsidies: NOC has been reporting large monthly losses, reaching as high as US$18 million in Jan 2012. In recent months, losses have been dominated by underpricing of LPG. In Dec 2012, NOC proposed a new subsidy mechanism for LPG, which would limit price subsidies to households only who would be entitled to one 14.2-kg cylinder a month at the subsidized price, and deliver the subsidy through a post-purchase cash refund. LPG cylinders for households would be colored red, and other cylinders blue, in addition to households receiving red cards and all other consumers blue cards.

Protests: Protests against fuel price hikes by students are common.

Information: 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

Gasoline 95 Octane Diesel
in USD*

in Local Currency

* 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.


GIZ IFP2012 Nepal.png


  • 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
Transparency of
Price Composition 		Transparency of Pricing
Mechanism / Monitoring
IFPDB matrix background.png
IFPDB matrix point.png
 IFPDB trafficlight green.png IFPDB trafficlight explanation.png IFPDB trafficlight green.png



Sources to the Public

Type of Information Web-Link / Source
Other Information http://www.nepaloil.com.np
Price Composition http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=profitloss (In Hindi language only)
Pump prices and margins http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=previoussellingprice
Pump prices and margins http://www.nepaloil.com.np/main/?opt1=sellingprice&opt2=sellingprice


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
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