Covid Effect: Lubricants prices in Nepal to be hiked again
"Various importers and distributors of Lubricants in Nepal have indicated the hike in prices"
The price of Lubricant that increased just before the prohibition period started in April, is about to be hiked again.
Various importers and distributors of Lubricants in Nepal have indicated the hike in prices. Last time before the prohibition the price was increased by 10% and this time it might increase by at least 12%. Distributor of Motul Lubricants in Nepal, VG Automobiles’ business head Purshottam Poudel says that prices for diesel, petrol, hydraulic and gear oil are about to be hiked.
The increase of travel and labor fee in the international market due to the Covid-19 has affected the prices, says NADA Lubricants committee member Madhusudan Sigdel. Normally these prices do not elevate at this rate, but in the last 5 years the rise in prices has been significantly high. At this rate the prices might surge to the amount where the general public won’t even be able to afford it according to several businessmen in the field. In the Nepali market the demand for Lubricants is 40,000 KL, a year. 14,000 KL of the demand is produced locally and 18,000 KL are officially imported, which only totals to 32,000 KL, according to NADA Automobiles Association. Rest of the 8000 KL is imported illegally, that means among the total annual national transaction which is Rs 11,00,00,00,000, only Rs 8,00,00,00,000 is legal. To control this unauthorized exchange, NADA had requested for the Customs in these items to be reduced to a single rate of 20% from previously 5 to 30% rate. The legal import and local production would be heavily encouraged by reducing the the customs and it would also increase the government revenue.