NOC bearing almost a billion rupee loss fortnightly

KATHMANDU: Nepal Oil Corporation (NOC) has started incurring heavy losses after regular adjustment in the petroleum prices could not be made in line with global price of petroleum products.

The latest projection puts the loss to NOC to be around Rs 977.5 million in the 15 days of this month. NOC has been bearing losses of Rs 65 million daily.

The heavy loss is due to the loss incurred by NOC on the sale of petrol, diesel, kerosene and liquefied petroleum gas (LPG).

Nepali market consumes 65,000 kl diesel and 17,000 kl petrol every month, according to the projection of Nepal Oil Corporation.

As per the price list sent by the Indian Oil Corporation (IOC) on Monday, NOC has to pay it Rs 51.69 per liter of petrol, Rs 52/39 per liter of diesel, Rs 48.76 per liter of kerosene and Rs 48.05 per litre of aviation fuel for the first fortnight of February.

Similarly, NOC will have to pay Rs 1129.81 per cylinder of LPG to the IOC. Tax is imposed under various headings in the price list sent by IOC.