NOC makes profit in LPG after a year, earns Rs 1.6 billion in just 15 days

Published On: July 2, 2023 07:30 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, July 2: Nepal Oil Corporation (NOC) has announced a profit in the sale of LPG after a one-year period. According to Manoj Kumar Thakur, deputy director of NOC, the corporation has made a profit of Rs 7 per cylinder on LPG sales.

Thakur stated, "In the latest price list of petroleum products received from the Indian Oil Corporation (IOC) every 15 days, the price of gas has decreased by Rs 161 per cylinder." He further added, "After a year, we have finally witnessed a profit in the gas sector. Gas prices usually decline during the months of June to August, making it the peak season for profit in this sector."

Additionally, the corporation noted that the price of petrol has decreased by 14 paisa per liter from India, while diesel has witnessed an increase of Rs. 2.16 per liter. The price of kerosene has also risen by 5 paisa per liter, according to NOC.

These price adjustments reflect the new rates implemented by the IOC for Nepal starting from Saturday, July 1, considering the fluctuation in petroleum product prices in the international market.

Recent developments, such as tensions in Russia and the decision by OPEC Plus to reduce oil production have influenced the global crude oil prices, resulting in the IOC sending an updated pricing structure to the corporation.

According to the recent price list provided by India, Nepal Oil Corporation (NOC) has achieved a profit of 1.75 billion rupees in just 15 days. Currently, NOC's profit stands at 12 rupees per liter for petrol and 13 rupees per liter for diesel, as stated by the corporation.

Following widespread criticism regarding excessive profit margins in aviation fuel, the corporation recently reduced the price by Rs 26 per liter. Similarly, domestic aircraft fuel prices decreased by Rs 10 per liter. Presently, the price for domestic aviation fuel is set at Rs 150 per liter.

Furthermore, the price of international aircraft fuel has seen a reduction of 26 rupees, with the current selling price at Rs 151 per liter. However, this time the price of aviation fuel has also increased by 57 paisa. Thakur mentioned that the corporation is making a profit of Rs 37 per liter domestically and Rs 57 per liter for international sales.

Thakur further stated that if these prices remain stable, the corporation is projected to earn a profit of 1.6 billion rupees in the next 15 days. Moreover, the corporation has successfully cleared its debt with the Indian Oil Corporation (IOC), with the outstanding amount being paid off in June. Presently, the corporation is required to pay an interest of Rs. 430 million to the IOC.