NOC which hasn’t lowered petroleum prices despite a fall in fuel prices in int’l market, claims it still faces heavy losses

Published On: August 3, 2022 07:35 PM NPT By: Republica | @RepublicaNepal

As per the new fuel price lists received from the IOC in the past two weeks, petrol should have become cheaper by over Rs 32 and diesel by over Rs 29 per liter but the NOC has ignored the auto pricing system

KATHMANDU, August 3: Nepal Oil Corporation (NOC) has been reluctant to reduce the prices of petroleum products although the Indian Oil Corporation (IOC) —the sole supplier of fuels to NOC — recently revised the fuel prices by notable amounts.

The state-owned oil monopoly has said it will not reduce the prices of petroleum products as it still faces huge losses. Issuing a press release on Wednesday, NOC said it currently faces a fortnightly loss of Rs 635.80 million and if it is to sell fuel at the new rates sent by the IOC, then its loss will go further high.

According to NOC, it now earns a profit of Rs 2.78 per liter in petrol while it faces a loss of Rs 9.37 per liter in diesel. Similarly, according to NOC, the loss it incurs in cooking gas stands at Rs 499 per cylinder. The corporation is yet to clear dues worth Rs 23 billion to the IOC.

Time and again, the NOC courts controversies, and is accused of readily raising the prices of petroleum products when the prices rise in the international market but not lowering the prices in the country when the prices drop in the international market.

In the last two weeks, the IOC has sent as many lists of fuel prices, reducing the prices of the fuels it sells to the NOC.

According to the new rates that the NOC received from the IOC on Monday, the price of petrol has been reduced by Rs 16.80 per liter and that of diesel by Rs 12.45 per liter.

Similarly, the IOC reduced the price of petrol by Rs 15.76 per liter and that of diesel by Rs 16.50 per liter two weeks ago as well.

Meanwhile, the All Nepal National Free Students’ Union (ANNFSU) on Wednesday staged a protest against NOC’s apathy to reduce fuel prices. The Bagmati Province Committee of the ANNFSU picketed the NOC’s head office at Teku and handed over a memorandum demanding NOC follow the rule of the auto pricing system.

Similarly, the Federation of Nepalese National Transport Entrepreneurs also slammed the NOC’s decision not to revise the fuel prices. “It is really sad that the corporation is unwilling to reduce the prices even when there is a fall in fuel prices in the international market,” reads a press statement issued by the Federation.