Monthly loss of NOC crosses Rs 400 million

January 11, 2006
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The monthly loss of the ailing monopolist of the petroleum products, Nepal Oil Corporation (NOC), has crossed Rs 400 million thanks to its inability to adjust the price of petroleum products in accordance with the prices at the international market, reports said.

The total loss of the NOC has presently climbed to a whopping Rs 8.5 billion, the state run Rising Nepal daily reported.

As a regular installment, the NOC has to pay the Indian Oil Corporation Rs 2.8 billion within January 15 and also clear the old dues worth Rs 1.4 billion, according to the NOC.

According to the NOC, the price of petrol in Nepal is cheaper by Rs 7.57 per litre, diesel by Rs 7.79 per litre, aviation fuel by Rs 9 per litre and LPG gas by Rs 333 per cylinder, as compared to the Indian market.

As per the information given on the 36th anniversary of the NOC on Tuesday, the NOC has taken loans worth Rs 4.3 billion from the government, Rastriya Banijya Bank, Employees Provident Fund, Citizens’ Investment Fund, Agriculture Development Bank and other financial institutions.

In the fiscal year 2003/04, Nepal consumed 85,827 kilolitres of petrol, 336,826 kilolitres of diesel, 232,565 kilolitres of kerosene and 77,575 metric tons of LPG, the NOC said.

Assistant Minister for Industry, Commerce and Supplies Rajesh Kaji Shrestha presented medals to the employees completing 25 years of service to the corporation on the occasion.

Secretary at the Ministry of Industry, Commerce and Supplies Bharat Bahadur Pradhan presented the Subarna Memorial Prize to the best employee of the year, Dharma Ratna Bajracharya. The prize was founded in the memory of the founding chairperson of the NOC Subarna Bikram Thapa.

Acting Director of NOC, Umesh Prasad Dahal said the corporation has suffered big financial damage for not being able to adjust the price as per the hike in the price at the international market.