Nepal Oil Corporation (NOC) has increased the price of petrol by Rs 5 per litre effective Sunday. The price of petrol has reached Rs 102 per litre from Rs 97.
A meeting of the board of directors of NOC decided to hike the petrol price on Friday. However, the decision was made public only on Sunday.
NOC said, it was forced to increase the price of petrol as the price of crude oil is increasing in the international market. NOC claimed it was bearing a loss of Rs 0.5 billion per month while selling petrol at the old price.
The price of other petroleum products - kerosene, diesel, cooking gas and aviation fuel - has not been changed.
Sunday, June 12, 2011
reason for increasing the price of fuel
"One of the things I think is very important to realize is that the growth in the world oil consumption is not that strong." —David Kelly, chief market strategist, J.P. Morgan Funds;
"...There is substantial evidence that the large amount of speculation in the current market has significantly increased [oil] prices." —U.S. Senate Staff Report, The Role of Market Speculation in Rising Oil and Gas Prices, June 27, 2006
On May 13, the price of a barrel of oil briefly hit a record of $126.98 on the New York Mercantile Exchange The reason was ostensibly that Iran was cutting oil production. But there is no gas shortage. So why are prices still going up?
In late April the American Association of Petroleum Geologists held its annual invitation-only dinner in Dallas for, as my source put it, "the bigwigs" of the energy industry. During this meeting, influential and knowledgeable CEOs reached the consensus that "oil prices will likely soon drop dramatically and the long-term price increases will be in natural gas." Of course, despite the pedigrees of those in attendance, their forming a consensus on the direction of energy prices does not mean that it's written in stone or is even going to happen. The group is clearly bullish on natural gas. But petroleum keeps getting more expensive.
The energy executives' prediction about the future price for crude oil had sound backing. Just a few days earlier, Lehman Brothers (LEH) investment bank had said that this current oil pricing boom was quickly coming to an end. Michael Waldron, the bank's chief oil strategist, was quoted in Britain's Daily Telegraph on Apr. 24 as saying: "[Oil supply] is outpacing demand growth." Waldron added, "Inventories have been building since the beginning of the year. The Saudi Khursaniya field has just opened, with 500,000 barrels a day of production, and the new Khurais field will start next year with a further 1.2 million b/d [barrels a day]
"...There is substantial evidence that the large amount of speculation in the current market has significantly increased [oil] prices." —U.S. Senate Staff Report, The Role of Market Speculation in Rising Oil and Gas Prices, June 27, 2006
On May 13, the price of a barrel of oil briefly hit a record of $126.98 on the New York Mercantile Exchange The reason was ostensibly that Iran was cutting oil production. But there is no gas shortage. So why are prices still going up?
In late April the American Association of Petroleum Geologists held its annual invitation-only dinner in Dallas for, as my source put it, "the bigwigs" of the energy industry. During this meeting, influential and knowledgeable CEOs reached the consensus that "oil prices will likely soon drop dramatically and the long-term price increases will be in natural gas." Of course, despite the pedigrees of those in attendance, their forming a consensus on the direction of energy prices does not mean that it's written in stone or is even going to happen. The group is clearly bullish on natural gas. But petroleum keeps getting more expensive.
The energy executives' prediction about the future price for crude oil had sound backing. Just a few days earlier, Lehman Brothers (LEH) investment bank had said that this current oil pricing boom was quickly coming to an end. Michael Waldron, the bank's chief oil strategist, was quoted in Britain's Daily Telegraph on Apr. 24 as saying: "[Oil supply] is outpacing demand growth." Waldron added, "Inventories have been building since the beginning of the year. The Saudi Khursaniya field has just opened, with 500,000 barrels a day of production, and the new Khurais field will start next year with a further 1.2 million b/d [barrels a day]
growing demand of petrol in the world
Soon the diesel cars will be dominating the Indian roads. Thanks to the rise in the petrol prices that has gone through the roof. According to the reports of the survey done by rating agency Care, around 90 per cent of the new car sales in the utility auto mobile segment are in the diesel variant, it is further growing in the passenger car segment also. The difference between diesel and petrol prices is a vital factor leading to the growth of the diesel car segment. The report also revealed that the government will not decontrol diesel prices completely in short term due to the increase in the cost of this primary transportation fuel which will result in stoke inflation.From the second quarter of fiscal year 2011 the De-regularization of the petrol prices has provided autonomy to oil firms for setting up the petrol prices as the crude oil price rise. In the last two quarter, the prices have been revised 6 times leading to 16 per cent hike in the petrol prices. On the contrary the diesel price witnessed a hike of 4.5 .As per Care, the average fuel price in every km for the diesel car variant is around Rs 1.7 per km which was Rs 3.5 per km for the petrol run car in January 2010. While the price hike for the fuel cost for the petrol variant presently spiked to Rs 5.3 per km, the price for the diesel variant increased only to Rs 2.3 per km. As per Care, the traveling distance is over 30 km per day, manufacturing diesel car models which will be cheaper than the petrol car model.The auto mobile industry is launching a new array of cars in the diesel variant.The auto mobile industry witnessed Volkswagen and Nissan Motors to enter the highly competitive small car segment in India. While the increasing fuel prices will keep the potential customers away.New cars to look forward to this year include Tate Manda Elan, Nissan Sunny, Maruti Cervo, Hyundai Avante, Toyota Etios Liva and Honda Brio and Chevrolet Beat
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