The state-owned oil monopoly owes around Rs 1.8 billion to IOC, the sole supplier of petroleum products for Nepal. [break]
“We are going to clear dues of IOC worth around Rs 1.8 billion as we have received loan of Rs 1 billion and VAT refund amount of Rs 700 million from the government,” NOC Spokesperson Shiva Prasad Pudasaini told Republica on Saturday.
The government has extended credit of Rs 1 billion to NOC through Employees´ Provident Fund (EPF) along with VAT refund of Rs 700 million to shore up loss-making NOC, which usually fails to make timely payment to the Indian oil supplier.
“We have provided Rs 1 billion of revolving loan to NOC at annual interest rate of 12.5 percent,” said EPF Chief Administrator Krishna Prasad Acharya. NOC, meanwhile, has asked the EPF to reduce the interest rate to around 10 percent.
IOC had previously reduced the supply of petroleum products to Nepal to exert pressure on NOC to clear dues.
With the latest disbursement of loan, total accumulated loan of NOC has reached Rs 28.5 billion with different financial institutions, including EPF´s Rs 8 billion.
NOC has posted accumulated loss of Rs 23 billion as it has been suffering a loss of Rs 1.16 on per liter sales of diesel and Rs 513.14 on every 14.2kg-cylinder.
However, NOC is making profit of Rs 6.63 on sales of every liter of petrol, Rs 9.16 on sales of every liter of kerosene and Rs 20.24 on sales of every liter of Aviation Turbine Fuel (ATF).
With the fall in price of petroleum products in the international market, NOC´s monthly loss dropped to Rs 363.8 million in March from Rs 730 million recorded in February.
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