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The state-owned Nepal Oil Corporation (NOC) has slashed the prices of petrol, diesel and kerosene by Rs3 per litre effective from Sunday midnight.

A meeting of the NOC board made the decision on Sunday evening to reduce the price of petrol, diesel, kerosene, and aviation fuel.

The NOC decision came days after Prime Minister Pushpa Kamal Dahal directed the country's oil monopoly to reduce the price of petroleum products to provide relief to people.

The latest revision meant petrol costs Rs175 per litre, diesel and kerosene each cost Rs172 per litre. The price of aviation fuel has been reduced by Rs20 to Rs170 per litre for domestic flights and $225 to $1,420 per kilo litre for international flights, according to  the NOC.

There has been no change in the price of cooking gas, which remains at Rs 1,800 per cylinder.

This is the second time in a month that NOC has reduced the prices of petroleum products. It had reduced the prices of petrol, diesel and kerosene by Rs3 per litre each on December 16.

The NOC has outstanding dues around Rs18 billion, including IOC debts and government loans. 

Petroleum prices in Nepal had peaked last June because of the increased fuel prices on the international market due to the Russia-Ukraine war. Then petrol cost Rs199 per litre, and diesel and kerosene each cost Rs192 per litre.