According to the latest price list of fuels sent by the Indian Oil Corporation (IOC), the Nepal Oil Corporation (NOC) is expected to incur a loss of Rs 636.5 million in the next 15 days. As per the previous price list, the NOC incurred a loss of Rs 14 per liter in petrol, Rs 22 per liter in diesel, and Rs 582 per cylinder in LPG.
Even though the accumulated loss of NOC has reached about Rs 31 billion, the oil monopoly is under pressure to reduce the price of the petroleum products. Recently, with the decrease in the price of fuel in the international market, the parliamentarians have requested the NOC to reduce the prices of fuel. The NOC is yet to pay Rs 23 billion to the IOC.
Speaking in the National Assembly on Monday, the MPs demanded an immediate price reduction as the IOC, the sole supplier of fuel to Nepal, has reduced the prices of petroleum products. MP Deepa Rawal said that since the IOC has reduced the price of fuels twice in the past couple of weeks, fuel prices should be reduced in Nepal as well. “When the price of petroleum products increases and decreases, they should be adjusted accordingly,” Rawal said, “Even though the price has decreased twice, NOC has not decreased it.”
Similarly, MP Sumitra BC said that the increase in prices would cause more suffering to the people and that the price should be controlled. Last week, the IOC sent a revised price list to NOC, decreasing the price of petrol by Rs 16.80 per liter, diesel by Rs 12.45 per liter and gas by Rs 77 per cylinder. According to the new price list, the NOC is expected to incur a loss of Rs 636.5 million in the next 15 days. The corporation claims that it faces a loss of Rs 14 per liter in petrol and Rs 22 per liter in diesel, and Rs 582 per cylinder of LPG.
As the price of crude oil is continuously falling in the international market, the IOC has reduced the price of petroleum to Nepal. Although the price has come down, the NOC faces a loss of Rs 10 per liter in diesel and more than Rs 500 per cylinder in LPG, according to the corporation. In petrol, there is a profit of more than two rupees per liter. The corporation is currently selling petrol at Rs 181 per liter and diesel at Rs 172 per liter. Similarly, kerosene is being sold at Rs172 per liter. Aviation fuel (domestic) is being sold at Rs 190 per liter. Aviation fuel (external) is being sold at US$1.645. Similarly, LP gas is being sold at Rs1800 per cylinder.
NOC Spokesman Binit Mani Upadhyaya said that even though the price has come down, the corporation still faces losses and has not been able to adjust the price. As much as 59 percent of the petroleum products imported into the country is diesel. Therefore, with the loss in diesel, the overall balance sheet of the corporation is being affected. Similarly, petrol makes up 21 percent of the petroleum products imported while gas makes up just 17 percent.
As the accumulated losses increased, the NOC took a loan of Rs 7 billion from the Government of Nepal and Rs 3 billion from the Rastriya Banijya Bank to purchase fuel.
