Government to provide NOC with Rs 4.25bn for fuel purchase

KATHMANDU: The government has decided to provide Nepal Oil Corporation (NOC) with funds for the purchase of petroleum products. NOC is in trouble after its accumulated savings fell to zero. A meeting of the Price Stabilisation Fund held on Monday decided to provide the remaining Rs 4.25 billion the NOC has to pay under the first instalment to Indian Oil Corporation (IOC). Even after the price adjustment of petroleum products last Thursday, the NOC has stated that there is a loss of around Rs 2.5 billion in 15 days. The purchase price of the NOC has been increasing due to the recent rise in the price of crude oil in the international market. The corporation had sought funds from the fund after the first instalment to the IOC due in March was insufficient. The corporation has been paying instalments to IOC on the 8th and 23rd  of every month. Prior to this, in January, Rs 1.80 billion was provided to the corporation from the Price Stabilisation Fund. Spokesperson Binit Mani Upadhyaya said that the decision of the government to provide funds to the NOC would help in keeping the supply of petroleum products smooth. By RSS READ ALSO:

• NOC hikes fuel price; petrol costs 150 per litre
• NOC pays over Rs 13bn to IOC with government’s assistance
• Government ambiguity knocks economic recovery off track