Halved fuel taxes won’t benefit consumers but will trim NOC losses
Summary
The government has cut fuel taxes by 50 percent to reduce losses for Nepal Oil Corporation, but this tax cut will not lower retail fuel prices for consumers amidst rising global oil prices.
Key Points
- The government slashed customs and infrastructure taxes on fuel by 50 percent to help Nepal Oil Corporation manage financial losses.
- NOC officials stated the tax cut will not reduce retail fuel prices for consumers due to rising international oil prices.
- NOC is experiencing substantial losses on petrol, diesel, and LPG, with fortnightly losses estimated at Rs11.71 billion.
- Government measures to reduce fuel use include reinstating two-day weekends for government offices and considering vehicle fuel use restrictions.
