Kathmandu, January 15: The net profit of the Nepal Oil Corporation (NOC) has increased by 41 percent in the last fiscal year compared to the previous year. In the fiscal 2018/19, the NOC made a net profit of Rs 8.75 billion while such earning in 2017/18 had been estimated at Rs 3.58 billion.
Likewise, its transaction volume also saw a rise by almost 25 percent to reach Rs 246 billion in the last fiscal year compared to 2017/18. Acting Deputy Executive Director of NOC Nagendra Sah said that the slash in the petroleum prices in the international market, managerial reforms and automated price adjustment system of the fuel have contributed to good economic health of the corporation.
Currently, NOC is making profits in petrol, diesel and aviation fuel while it is bearing Rs 162 loss in each LP gas cylinder. The officials said that the NOC paid Rs 65 billion in revenue in the state treasury in the last fiscal year while the revenue amount was Rs 55 billion in the previous year. The corporation pays customs tax, road maintenance cost, environmental cost, VAT and some others in the state treasury. Besides, the government has been collecting additional Rs 5 per liter diesel, petrol, and aviation fuel in infrastructure development tax.
The government is supposed to invest that money for the development of Budhigandaki Hydropower Project. So far, Rs 40 billion has been collected under the title of infrastructure development tax. Likewise, the NOC has decided to give 20 percent cash dividend to its shareholders. Seven different government bodies including Nepal Government, Nepal Bank, Rastriya Banijya Bank, Rastriya Beema Sansthan, Food Management and Trade Company (the then National Trading Limited), Finance Ministry, Industry, Commerce and Supplies Ministry and Department of Commerce have their shares in the NOC.