NOC estimates its monthly loss at Rs 4.44 billion due to soaring oil prices in int’l market

Published On: October 18, 2021 06:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, OCT 18: Nepal Oil Corporation (NOC)’s projected loss of the next 15 days hits Rs 2.22 billion at the new price rates that the corporation received recently from the Indian Oil Corporation (IOC), which is NOC’s sole supplier of petroleum products.

According to NOC, the estimated monthly loss worth Rs 4.44 billion will be the record high loss in the history of the state owned oil monopoly.  “If an appropriate measure is not taken on time, it will severely affect the supply of petroleum products in the domestic market,” said NOC Spokesperson Binit Mani Upadhyaya.

The NOC’s hefty loss has appeared mainly due to the escalating price of the crude oil in the international market along with the sharp depreciation of Nepali currency against the US dollar. As per media, the price of Brent Crude oil stands at $ 84.86 per barrel on Sunday. Currently, the exchange rate of US dollar is Rs 120.72 per dollar, shows the record of Nepal Rastra Bank.  

According to Upadhyaya, in the revised prices, the corporation now faces a loss of Rs 15.01 per liter on petrol, Rs 14.16 per liter on diesel, Rs 4.56 per liter on air turbine fuel (domestic). The loss on cooking gas is Rs 511 per cylinder.


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