NOC owes Rs 21 billion to IOC

KATHMANDU: Nepal Oil Corporation (NOC) said it has to pay Rs 21 billion to the Indian Oil Corporation (IOC) for the purchase of petroleum products till the last of August. The amount to be paid to the IOC has gone up since the NOC failed to pay on time due to a heavy loss in the sale of petroleum products for a long time. NOC's Spokesperson Binitmani Upadhyay said accessible supply of petroleum products by clearing the dues to the IOC is a challenge for NOC. The government had provided Rs 7 billion in loan to the NOC some weeks ago to purchase petroleum products after its reserve funds remained empty. Likewise, NOC had taken Rs 3 billion in loan from Rastriya Banijya Bank (RBB) to ensure accessible supply of petroleum products. Meanwhile, the NOC has hiked the price of diesel and kerosene oil since last midnight. With the new price list, diesel and kerosene will cost Rs 178 and Rs 172 per litre respectively. The price of other petroleum products — liquefied petroleum gas (LPG), petrol and aviation turbine fuel — remains unchanged. The state-owned trading enterprise that imports, stores and distributes petroleum products claimed that it will incur a loss of Rs 610 million in a month even after the latest price adjustment on fuels. The price of petroleum products has again started going up in the international market for the past two weeks though it was in the decreasing trend in the previous weeks. By RSS READ ALSO:

• 'Profit belongs to NOC, consumers bear the brunt of loss', rant lawmakers
• Price of petroleum products will not be adjusted: NOC
• Government to provide Rs 7 billion loan to NOC
• NOC proposes to limit fuel for vehicles; 5L to two wheelers, 20L to four wheelers
• NOC hikes fuel price; petrol costs Rs 181 per litre