A highly placed source at the NOC said the oil monopolist decided to bring down diesel import to avoid further loss in trading of diesel. “Despite the decrease in diesel import, domestic market would not have to face shortage for the time being as we have sufficient stock,” the source added. The source further added that the NOC would supply fuel during the Dashain and Tihar festivals from its stock, in line with the government commitment of smooth supply of essential commodities during the festive season.
Following the revision of petroleum prices by Indian Oil, sole supplier to Nepal, for the month of September, the NOC has been suffering loss in diesel and Liquefied Petroleum Gas (LPG). NOC is suffering a loss of Rs 87.24 per cylinder of LPG. However, the NOC is enjoying a profit of Rs 1.80, Rs 3.22 and Rs 13 in per liter of petrol, kerosene and Air Turbine Fuel (ATF) respectively. Crude oil is selling for $73 per barrel in international market.
Petroleum dealers said there had been no obstacle in the supplies of fuel, including diesel, due to the NOC´s latest decision. “We are receiving smooth supply of diesel and kerosene,” said Saroj Pandey.
The NOC source said monthly consumption of diesel hovers around 45,000 KL across the country and the NOC has 55,000 KL in its stock. NOC is not reducing the supplies of petrol as it is making profit by selling petrol. Currently, NOC is importing 12,000 KL of petrol, 7,000 KL of ATF and 12,000 tons of LPG every month.
NOC had enjoyed huge profit when crude prices declined from $147 barrel to $40 in international market. It was also setting aside Rs 500 million per month to repay due to IOC for the last seven months.
Following revision in prices, the NOC officials said they were expecting a loss of Rs 190 million in September.
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