KATHMANDU, Jan 18: Nepal Oil Corporation (NOC) has issued a press note, stating that the company is having to take loans in order to procure fuel for the country. NOC maintained that the company has depleted all its accumulated profits and is in a state where it cannot even pay to buy fuel.
According to the corporation, since the price could not be adjusted in Nepal due to the increased price in the international market, it has become necessary to take a loan to repay the purchase price of oil from this month. It is mentioned in the press note that the corporation has Rs 2 billion to pay to the Indian Oil Corporation for the purchase of fuel by January 23. The corporation has stated that it has to take a loan or use the remaining amount in the price stabilization fund to pay for the procured fuel.
According to NOC, it is facing a loss of almost Rs 4 billion monthly, totaling over Rs 19 billion by mid-December last year. The corporation has stated that an additional amount of Rs 12 billion is required to maintain the supply of petroleum products across the country for the next three months. NOC claims that it is currently facing a loss of Rs 13.18 in petrol per liter, Rs 8.81 in diesel per liter, and Rs 646.16 in LPG.
Similarly, the NOC is facing a loss of Rs 20.50 in kerosene per liter and Rs 14.73 in jet fuel per liter, according to the press note.