Finance Ministry rejects loan to NOC

KATHMANDU,DEC 9: 

The Finance Ministry has denied new loan request forwarded by Nepal Oil Corporation (NOC). “The NOC had asked the Finance Ministry to release Rs 1.53 billion loan to keep the supply of petroleum products smooth,” said joint secretary at Ministry of Commerce and Supplies Deepak Subedi. 

“The Finance Ministry on Monday rejected the request saying that that it cannot release any new loan to the state entity..” The ministry is seeking other option to keep the fuel supply to meet the increasing demand, he said. 

Minister for Finance, Minister for Commerce and Supplies and representatives from National Planning Commission and Prime Minister Office had recently conducted a meeting to solve the fuel shortage problem, the ministry source confirmed. “But the meeting could not break the deadlock to solve the current crisis.”

The meeting was likely to take the decision of price hike, the source informed, adding that it could not take the decision due to reluctant from some ruling political alliance.

Meanwhile, Nepal Oil Corporation has said that short supply of petroleum products will continue unless the government come up with better options. “There is some 25 to 30 per cent short supply of fuel than normal demand,” for-managing director Suresh Kumar Agrawal said. The state oil monopoly supplied 322 kl petrol and 252 kl diesel in Kathmandu valley today. The scarcity of diesel has widened due to short supply, Nepal Petroleum Dealers’ National Association president Saroj Prasad Pandey said. The demand is even rising due to beginning of winter and load shedding. The state entity has projected the consumption of 533 kl petrol and 1833 kl diesel everyday in the country. But, the supply has reduced by 30 per cent in the current days, for managing director Agrawal said.

Source: THT