While this has exerted pressure on the corporation to go for the price hike, NOC on its part has urged the government to revoke the decision.[break]
The government through the newly promulgated Financial Ordinance had jacked up the roads maintenance fee on diesel to Rs 2 per liter from previous Re 1 a liter. Likewise, it had increased such fee on petrol to Rs 4 from Rs 2 per liter.
“The change in roads maintenance fee has increased our loss on diesel to Rs 3.75 per liter,” said NOC Managing Director Digambar Jha. The increased fee has also shrunk its profit on petrol to Re 1 per liter.
In total, the new change in fee structure has jacked up NOC´s loss to Rs 200 million a month, said Jha.
According to NOC records, monthly consumption of diesel and petrol stands at around 50,000 kiloliters and 12,000 kilolitres a month respectively.
Going by the existing import and retail rates, NOC was already incurring a loss of Rs 2.75 per liter of diesel.
“The increased cost has forced us to go for a hike in diesel,” said Jha.
But as rise in price of diesel -- the major transportation and industrial fuel -- will create inflationary pressure in the economy, Jha argues it will be better if the government revoked its decision.
“Withdrawal of the decision can save consumers from unwanted price hike,” he said.
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