KATHMANDU, March 8: Nepal Oil Corporation (NOC) on Tuesday paid Rs 14.30 billion to the Indian oil supplier for the purchase of the petroleum products.
Nagendra Sah, acting deputy executive director of NOC, said the state-owned oil monopoly settled the amount collectively generated from the receipt from sale of the petroleum products and price stabilization fund. Of the amount paid, NOC funded Rs 10.05 billion from the petroleum business while the remaining Rs 4.25 billion was mobilized from the price stabilization fund.
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Recently, NOC has been facing financial pressure due to the surging oil prices in the international market. After Russia invaded Ukraine, the price of crude oil has reached over US $ 139 per barrel.
According to NOC, at the latest purchase price, the enterprise now faces a loss of Rs 2.50 billion in the next 15 days. As of now, NOC has been mobilizing the money from the fund to finance its losses. Sah said the enterprise is now left with only Rs 4.45 billion in its price stabilization fund.
After adopting the auto pricing system in September 2014, NOC has been revising the fuel prices in the domestic market as per the reference rate sent by Indian Oil Corporation on a fortnightly basis. NOC pays its Indian counterpart - the IOC - on the 8th and 23rd days every month.
