Money
NOC set to incur loss for first time in two years
Nepal Oil Corporation (NOC) is set to incur loss for the first time in more than two years.Nepal Oil Corporation (NOC) is set to incur loss for the first time in more than two years.
The state-owned fuel supplier has projected a monthly loss of around Rs70 million for January, as it has not been able to review fuel prices in line with the international market rates.
Based on the new tariff sent by its supplier Indian Oil Corporation (IOC) on January 2, NOC has projected loss of Rs78.24 per LPG cylinder and Rs1.50 on a litre of diesel.
NOC, however, will enjoy profits of Rs15.12 and Rs7.50 per litre on jet fuel sold to international and domestic carriers, respectively. Its projected profits on kerosene and petrol stands at Rs15.14 and Rs1.33 per litre, respectively.
NOC adopted automated pricing system on September 29, 2014, under which it has to revise fuel prices fortnightly based on the tariff forwarded by IOC. It has not faced losses ever since it adopted the auto pricing mechanism, largely due to falling international market prices.
Last December, NOC had raised prices of petrol, diesel and kerosene each by Rs4.50 per litre, citing fuel smuggling to India due to the difference in prices. As the hike drew massive criticism, the Parliamentary Industry, Commerce and Consumer Welfare Committee had asked NOC to roll back the hike.
NOC Spokesperson Bhanubhakta Khanal said the losses widened as NOC was unable to raise prices due to pressure from all quarters. He said NOC’s cumulative profit currently stands at Rs7.4 billion.
Indian vehicles refuelling in Nepal
KAKARVITTA: As fuel prices are cheaper in Nepal compared to India, an increasing number of vehicles with Indian licence plates are refuelling at pumps at bordering Nepali towns.
Petrol costs IRs73.24 per litre (Rs117 per litre), while diesel is priced at IRs60.05 per litre (Rs97 per litre) in India. According to Nepal Oil Corporation depot in Jhapa’s Charali, petrol is cheaper by Rs15 per litre and diesel by Rs19 per litre in Nepal compared to India.
Sanjay Chhetri, a taxi driver based in bordering Indian town of Siliguri, said he visits Nepal almost every day to refuel his vehicle given a big price difference.
Big goods carriers from India also refuel at petrol pumps at Kakarvitta, Dhulabari and Charali of Jhapa. “We can save a big amount while purchasing a large quantity of diesel in Nepal,” said Hardip Singh, a driver of coal transporter from India’s Aasam. (PR)