NOC pushed for the price hike, arguing that it was suffering a loss of about Rs 105 on a cylinder (14.2 kg) of gas and Rs 1.07 paisa on a liter of diesel at the existing retail rates. [break]
Together, these products are generating a monthly loss of about Rs 130 million to the corporation. NOC is facing a loss of Rs 110 million from LPG alone.
“Despite this, our proposal of raising the price of diesel -- the industrial fuel -- and LPG -- the popular urban household fuel -- failed to get the nod of the board of directors,” said NOC Chief Digambhar Jha.
Although Jha said that NOC Chairman and Commerce Secretary Purushottam Ojha and other board members, who are joint secretaries from different ministries, have promised to talk the case with senior authorities, sources said their response to Jha´s proposal was negative.
“The board members were of the view that adjustment in fuel prices in the midst of the festive seasons would be a ´politically wrong´ decision,” said an NOC source.
During the meeting, officials of Ministry of Commerce and Supplies (MoCS) had even stated that raising the fuel prices at a time when the Ministry itself has set up fair price shops and instructed public and private suppliers to supply goods at lowered rates till Chhat festival was out of question.
Following such response, Jha had dropped the idea of raising LPG price and pushed for adjustment in the prices of diesel only. But the NOC board declined it as well.
Apart from these two products, NOC management also informed the board members that existing price of petrol in Nepal is cheaper than bordering Indian towns by Rs 4 per liter. Stating that such a huge gap in cross-border prices prompts illegal backflow of the petrol to India, Jha also sought the board members´ suggestion to deal with the problem.
Despite government´s refusal, NOC has clarified that it will still continue to operate in profit during the month of October. “We are making profit on kerosene, petrol and aviation fuel. Despite the loss in diesel and LPG, we estimate to make profit of Rs 50 million this month,” an NOC source told Republica.
NOC is currently enjoying a handsome profit of Rs 7 on a liter of kerosene, over Rs 15 per liter of aviation fuel and about Rs 2 per liter of petrol.
Related story
NOC ups fuel price while int’l price falls marginally
_20211006150830.jpg)
