KATHMANDU, July 4: Nepal Oil Corporation (NOC) on Monday drew attention of the government for the possible disruption in petroleum supply citing shortage of funds to pay to the Indian oil supplier amid its soaring financial loss.
Sending a letter each to the Office of the Prime Minister and Council of Ministers, the Ministry of Industry, Commerce and Supplies and the Ministry of Home Affairs, NOC has said the country’s outstanding dues to the Indian Oil Corporation has reached Rs 22 billion, which will reach to around Rs 30 billion from July 8. “While the monthly loss of NOC now stands at Rs 10 billion, the cumulative loss will reach Rs 55 billion by the end of this fiscal year,” reads the letter sent by the state-owned oil supplier.
In recent days, the price of fossil fuels has been soaring in the international market mainly due to the ongoing war between Russia and Ukraine. According to NOC, its loss amount is increasing as it is unable to adjust the fuel price in the line of the prices in the international market.
NOC has long been pushing the government to implement a number of measures to check consumption of petroleum products to reduce its losses. This time too, the state-owned oil monopoly has recommended the government to implement a quota on fuel purchase and enforce an odd-even system on vehicle use.
NOC has sought the government’s approval to maintain a quota for a two-wheeler at five liters on each purchase. Similarly, a four-wheeler is recommended to allow purchasing up to 20 liters of fuel at a time.