NOC collects Rs 13b for Budhi Gandaki project from consumers
November 21, 2017 05:00 AM NPT
By: Dilip Poudel
KATHMANDU, Nov 21: Nepal Oil Corporation (NOC) has collected Rs 13 billion from consumers for the Budhi Gandaki Hydropower Project in the past 16 months.
The NOC has been collecting infrastructure tax of Rs 5 on each liter of diesel, kerosene, petrol and aviation turbine fuel sold, according to Narendra Shah, executive director of NOC.
While announcing the tax, the government had said that the amount thus collected will be used to develop the 1,200-megawatt project in Budhi Gandaki River that flows between Gorkha and Dhading districts.
LOSS OF Rs 215 MILLION PER MONTH
NOC will suffer loss of Rs 215 million this month as per the rates forwarded by the Indian Oil Corporation (IOC).
Though the NOC had made upward revision to fuel prices after IOC increased price of fuel, it was forced to rollback the decision on the direction of Prime Minister Sher Bahadur Deuba. The state-owned petroleum monopolist has already faced loss of Rs 175 million in just 15 days.
Before the IOC increased prices, NOC was enjoying profit on petrol, kerosene and aviation turbine fuel. NOC at present is facing loss of diesel and LPG. It is facing monthly loss of Rs 500.8 million on LPG, or Rs 237.67 per cylinder. Similarly, NOC is losing Rs 2.01 per liter or Rs 210.6 million per month on diesel. It, however, is profiting Rs 3.74 per liter of Rs 142.2 million per month on petrol. Similarly, NOC is making a profit of Rs 15 per liter on kerosene. The state-owned monopoly is profiting Rs 26.6 million per month on kerosene. Likewise in aviation turbine fuel, NOC is earning a profit of Rs 69.8 million and R 248.6 million per month on domestic and international flights, respectively.
Meanwhile, NOC is increasing stock of major petroleum products keeping in view the upcoming provincial and parliamentary elections. As Nepal-India border will remain closed for multiple days during elections, NOC is boosting its fuel reserves for the election days to 33,000 kiloliters from 29,000 kiloliters.
"We aim to increase supply of fuel in each of our depot across the country by 4,000 liters,” NOC spokesperson Birendra Goit told Republica.
NOC has total storage capacity of 71,000 kiloliters in its 10 depots. Its reserves can meet demand for petrol, diesel and aviation turbine fuel of five, 19 and 20 days, respectively.