Kathmandu: Starting from midnight, the government of Nepal will be implementing the Automatic Pricing System (APS) for petroleum products. The Nepal Oil Corporation (NOC), operating under the Ministry of Industry, Commerce, and Supplies (MoICS), has announced that the APS will be enforced for petrol, diesel, and LPG cylinders.

During a press conference, Madhu Kumar Marasini, Secretary at MoICS, stated that the decision to implement APS was made during a meeting of the NOC's Board of Directors held on Sunday. The move aims to benefit consumers, and Marasini expressed optimism that both the general public and entrepreneurs would find some relief through this decision. However, this pricing system will not be applicable to aviation fuel, and the previous arrangement will continue for it.

Under the APS, the retail price of petrol will be reduced by Rs 6 per liter, diesel by Rs 4 per liter, and LPG gas cylinders by Rs 10. In the Kathmandu Valley, the new price of petrol will be Rs 164 per liter, and diesel will also be priced at Rs 164 per liter. However, prices may vary in different regions of the country, as stated by the MoICS.

Furthermore, the cost of one LPG cylinder will decrease from Rs 1,800 to Rs 1,700. The implementation of APS became possible after the NOC settled its outstanding payment of Rs 31 billion to the Indian Oil Corporation. Additionally, the NOC still owes Rs 3.5 billion from the Rs 7 billion loan it obtained from the Nepalese government last year. In total, the NOC's current debt stands at Rs 29 billion.

Overall, the introduction of the APS for petroleum products in Nepal is expected to bring about price reductions for petrol, diesel, and LPG cylinders, offering potential relief to consumers and businesses alike.