KATHMANDU, Jan 24: The Nepal Oil Corporation (NOC) has paid over Rs 13 billion to the Indian Oil Corporation (IOC) for the procurement of crude oil. The NOC, which states that it has no savings left, had no other option but to ask the Nepal government for money to pay the IOC.
According to NOC Spokesperson Binit Mani Upadhyaya, the corporation took Rs 1.80 billion from the price stabilization fund to pay the second installment of the payment to IOC. The NOC has sent Rs 13.20 billion to the IOC today.
The NOC states that it is facing huge losses due to the rising prices of petroleum products in the international market. According to sources, the corporation will incur further losses if the price of petroleum products is not adjusted as the purchase price has been increasing. Furthermore, the NOC is worried about how to pay the installment for the next month to the IOC.
The corporation has been paying the IOC for purchasing petroleum products on the 8th and 23rd day of every month.