Nepal Oil Corporation (NOC) is on track to make a profit after being in the red for four consecutive months, thanks to a drop in global oil prices. The state-owned oil monopoly has projected a profit of Rs120.5 million for April. 

The profit estimate is based on the revised tariff received from its sole supplier Indian Oil Corporation last week. 

As per the latest price list, NOC’s profit has gone up to Rs6.52 on every litre of petrol sold, Rs1.47 on every litre of diesel, Rs16.91 on every litre of kerosene and Rs9.25 on every litre of aviation fuel sold to domestic airlines and Rs16.87 on every litre sold to foreign airlines. However, the company still loses Rs253.31 on every cylinder of cooking gas sold.

NOC Spokesperson Sitaram Pokharel said the corporation expected to make profits as prices had dropped on the international market. NOC has been racking up losses since December, according to him. 

NOC has jacked up prices of petrol, diesel and kerosene by Rs4.50 per litre over the four-month period. Similarly, the enterprise has increased the price of cooking gas by Rs50 per cylinder. 

With global prices falling, Indian authorities have also slashed domestic prices by IRs3.77 per litre for petrol and IRs2.91 per litre for diesel, reported the Times of India. 

NOC was able to end a perpetual losing streak and start making profits after it adopted automatic pricing for petroleum products in September 2014, aided by a sharp decline in international oil prices. Global prices had plunged to a low of $27 per barrel in January 2016. 

Prices rebounded to $59 per barrel over the last few months after the Organisation of Petroleum Exporting Countries (Opec) resorted to cutting production.

As per NOC, the price of crude oil in the international market on Sunday has come down to $55.24 per barrel. 

Crude oil prices have been declining in recent days with Saudi Arabia, in particular, ramping up output, said Reuters. The downswing in fuel prices has also been linked to a weaker US dollar. 

The proposed projects are the 1,110 MW Sunkoshi II and 536 MW Sunkoshi III located on the Sunkoshi River in central Nepal. The two countries have agreed to develop the schemes under the BBIN initiative signed by the four countries to facilitate regional trade and business.

As per the pact, the electricity produced by the two hydro projects will be evacuated to Bangladesh via India through the BBIN economic corridor.The two prime ministers also discussed the advantages of sub-regional cooperation in the areas of power, water resources, trade, transit and connectivity for mutual benefit.

“In this context, they noted the progress made by the Joint Working Groups of sub-regional cooperation between Bangladesh, Bhutan, India and Nepal on water resources management, trade, transit and connectivity,” the joint statement said.