As per the rates forwarded to the state-owned petroleum monopolist by Indian Oil Corporation, NOC will bear loss of Rs 587 per cylinder in February. In January, NOC had suffered loss of Rs 604.08 per cylinder. [break]
“The new rates have brought us some relief,” NOC Spokesperson Shiva Prasad Pudasaini told Republica.[break]
The price of LPG increases globally during winter as it is used as fuel for central heating in buildings as well. As days start to get warmer, the demand for LPG comes down gradually, triggering drop in prices.
As per the new rates, NOC´s profit margin on petrol will increase and loss on LPG will decreased. This means, NOC´s loss in February will come down by Rs 5.7 million. In January, NOC had suffered loss of Rs 331 million.
NOC officials, however, expect monthly loss of the corporation to rise in coming months due to rise in crude prices. “At present, we have been managing the loss. But international trend shows price will rise in the coming months,” he added.
As per the new rates, NOC´s profit on petrol will increase to Rs 8.83 per liter in February from Rs 7.96 recorded in January. Its loss on diesel, however, will increase by Rs 1.34 per liter
Meanwhile, NOC officials have said they are yet to receive the amount that the government has pledged to it to clear outstanding dues. Though NOC had asked the Ministry of Finance for early release of Rs 2 billion that the government had pledged, the latter had turned down the request. “The finance ministry had assured us of releasing the payment by mid-December. Unfortunately, it has not happened,” said Pudasaini.
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