KTHMANDU: The government has said it is not possible to reduce fuel prices at present, citing pricing set by the Indian Oil Corporation (IOC).

Speaking at a House committee meeting on Tuesday, Industry, Commerce and Supplies Secretary Krishna Bahadur Raut said Nepal is bound to adjust petroleum prices in line with rates set by the Indian Oil Corporation (IOC), leaving limited scope for price cuts.

He added that the government is still selling fuel and cooking gas at a loss to shield consumers from higher international prices. Raut also said a fully automatic pricing system would likely push prices even higher, so it has not been fully implemented.

He further noted that Nepal Oil Corporation is currently not profitable, and its employees are not receiving bonuses.