State-owned Nepal Oil Corporation (NOC) decided on Monday to end its authority of administering retail prices of petroleum products and empowered the private sector for this purpose.

According to various reports, the NOC said that it will limit its role in deciding the wholesale prices on two major petroleum products – petrol and diesel. The corporation would make the products available at fixed wholesale prices at the custom points and depots to the whole sellers. The transportation costs would be managed by them.

The whole seller would be given the right to increase the retail prices in the areas where transportation was costly. However, the NOC said that existing retail prices of the products would not rise in places of easy access by road.

The NOC fixed wholesale prices for diesel at Rs 44.16 per liter in its Biratnagar, Amlekhgunj, Birgunj, Thankot, Pokhara, Dang, Surkhet and Dipayal depots. The wholesale rate for Bhairahawa, Nepalgunj and Dhangadi is Rs 44.15 per liter.

Similarly, wholesale prices of petrol has been fixed at Rs 64.32 per liter in its Thankot, Dipayal, Pokhara, Dang and Surkhet depots; Rs 63.62 in Amlekhgunj and Biratnagar, and Rs 63.61 in Bhairahawa, Nepalgunj and Dhangadi.

NOC said that similar decision would be taken shortly for sale of kerosene and gas as well.

NOC has been running at a loss of over Rs 570 million per month. Donors have suggested that private sectors should be empowered in petroleum marketing to reduce the loss of the corporation. The corporation was financially weakened when the commercial banks denied any loans in fear that corporation would not repay it back.