Records show, NOC has nearly Rs 470 million in unsettled accounts to IOC.[break]
If NOC did not clear the dues, IOC will supply lesser fuel to Nepal, something which would cause supply to dwindle in the market.
The warning words from the country´s sole oil supplier came after NOC, which is reeling under mounting loss, paid less than what it imported over the first two installments this month. In the first installment, the corporation had paid as much as Rs 1.97 billion to the IOC.
“However, a chunk of that was meant for clearing outstanding bills of December. This caused a net payment shortfall of Rs 240 million,” said NOC Managing Director Digambhar Jha.
NOC had paid Rs 224 million less than what it was required to pay in the second installment.
Officials attributed the reemergence of dues to recent rise in import rates and failure of the corporation to adjust domestic prices accordingly. Citing Jan 1 import rates and existing retail prices, Jha said NOC estimates its loss to touch Rs 650 million in January.
“Worse still, the reviewed import rates that will come on Jan 16 could jack up monthly loss to Rs 750 million,” Jha added.
Contrary to the situation of depleting fund flow, which resulted from the loss of the past few months, NOC interestingly imported all-time high volume of 112,000 kiloliters in December.
The bills of that volume had totaled to Rs 7.84 billion, raising outstanding dues sharply.
NOC top brass said such a massive import was made largely to rebuild stock during winter, as drop in mercury narrows down temperature difference, thereby lowering technical losses.
The officials monitoring crude price movement too had recommended for the step, saying it will help NOC escape higher prices coming up in January and February.
To manage the situation now, the state-owned petroleum monopolist has requested the government to pledge it Rs 600 million. It has further asked the board to let it raise at least the price of petrol by about Rs 4 per liter.
It has also decided to stop liquefied petroleum gas (LPG) import from Haldiya and Mathura, a move which will bring down LPG imports to 12,000 tons a month from existing 15,000 tons.
“As we have been suffering a loss of more than Rs 350 per cylinder (14.2 kg) of gas, it will straightaway save Rs 200 million and also curtail our loss by more than Rs 73.50 million,” Jha added.
He, however, did not disclose how such cut in import will impact supply in the market. Nonetheless, Jha admitted that the new steps will only help him manage the looming crisis for the time being.
“The sustainable way is only one: adjust the prices in line with international trend,” he said.
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