The government has slashed taxes on petrol, diesel, and cooking gas to a maximum of 50%, but there is little hope that the price of fuel for consumers will drop. Rather, the reduction in taxes will benefit Nepal Oil Corporation (NOC), which is currently suffering huge losses due to high international oil prices. Despite the reduction in price, NOC claims that it is incurring losses on each liter of fuel. This is because the prices of oil internationally have been increasing due to the situation in the Middle East region. To conserve fuel and money, the government has also instituted a two-day weekend system.
Fuel Tax Cuts Ease NOC’s Losses But Offer No Relief to Consumers
