Ministry rejects loan to NOC
Kathmandu:
Finance Ministry rejected Nepal Oil Corporation’s (NOC) plea to lend it. “The ministry is unable to provide loan to the state oil monopoly since no amount has been earmarked in the budget, joint secretary at ministry Ram Sharan Pudasaini said, adding that it has asked the corporation to manage fund on its own.
“The ministry is not in the position to provide loan to it from the beginning of the fiscal year,” he said, adding that the ministry could provide loan to NOC in the end of fiscal year only, if the budget remain unspent.
The first priority of the ministry is not to provide loan to the state oil monopoly but to implement the different programmes mentioned in the budget.
The state oil monopoly had asked the Finance Ministry to release Rs 750 million loan for the smooth supply of petroleum products. “The corporation had asked loan from the ministry for the smooth supply of fuel at the time of festivals,” acting managing director Bachchu Kumar Kafle said, adding that it will hold talks with Finance Ministry official, again.
“The corporation, however, does not have any outstanding loan of Indian Oil Corporation,” Kafle said, “but the corporation needs loan to clear the loss of running month and to increase the quantity of fuel supply.”
The corporation is incurring Rs 583.8 million loss every month, according to August 16 price list sent by Indian Oil Corporation. It is incurring Rs 9.23 loss on a litre of diesel, Re 0.87 on a litre of kerosene and Rs 260.5 on a cylinder of cooking gas.
However, the state oil monopoly is making Rs 2.54 profit on a litre of petrol and Rs 20.97 profit on a litre of Aviation Turbine Fuel (ATF).
The state oil monopoly can ensure regular supply of fuel, if the Finance Ministry releases loan, Kafle said.
Artificial scarcity
Responsible officials of Nepal Oil Corporation have been involved in creating artificial shortage of cooking gas, blamed the Gas Dealer Federation of Nepal. The corporation is importing less amount of cooking gas and distributing to nearer and dearer ones, it said, adding that the country will face artificial shortage, if the supply situation will not improve. However, officials at the state oil monopoly claimed that the federation itself is engaged in creating artificial shortage. “Federation is hoarding cooking gas,” NOC said.
The blame game
At a time when consumer rights activists have been blaming petroleum dealers for charging rampant commission, Nepal Petroleum Dealers’ National Association (NPDA) has said that it do not believe High Level Committee report on petroleum sector reform. Even though valley petrol pumps abided by commission rate fixed by NOC, association is officially opposing Bhim Acharya led committee’s report, president of association Saroj Prasad Pande said, adding that it has reduced commi-ssion in baseless way.
Source: THT
Finance Ministry rejected Nepal Oil Corporation’s (NOC) plea to lend it. “The ministry is unable to provide loan to the state oil monopoly since no amount has been earmarked in the budget, joint secretary at ministry Ram Sharan Pudasaini said, adding that it has asked the corporation to manage fund on its own.
“The ministry is not in the position to provide loan to it from the beginning of the fiscal year,” he said, adding that the ministry could provide loan to NOC in the end of fiscal year only, if the budget remain unspent.
The first priority of the ministry is not to provide loan to the state oil monopoly but to implement the different programmes mentioned in the budget.
The state oil monopoly had asked the Finance Ministry to release Rs 750 million loan for the smooth supply of petroleum products. “The corporation had asked loan from the ministry for the smooth supply of fuel at the time of festivals,” acting managing director Bachchu Kumar Kafle said, adding that it will hold talks with Finance Ministry official, again.
“The corporation, however, does not have any outstanding loan of Indian Oil Corporation,” Kafle said, “but the corporation needs loan to clear the loss of running month and to increase the quantity of fuel supply.”
The corporation is incurring Rs 583.8 million loss every month, according to August 16 price list sent by Indian Oil Corporation. It is incurring Rs 9.23 loss on a litre of diesel, Re 0.87 on a litre of kerosene and Rs 260.5 on a cylinder of cooking gas.
However, the state oil monopoly is making Rs 2.54 profit on a litre of petrol and Rs 20.97 profit on a litre of Aviation Turbine Fuel (ATF).
The state oil monopoly can ensure regular supply of fuel, if the Finance Ministry releases loan, Kafle said.
Artificial scarcity
Responsible officials of Nepal Oil Corporation have been involved in creating artificial shortage of cooking gas, blamed the Gas Dealer Federation of Nepal. The corporation is importing less amount of cooking gas and distributing to nearer and dearer ones, it said, adding that the country will face artificial shortage, if the supply situation will not improve. However, officials at the state oil monopoly claimed that the federation itself is engaged in creating artificial shortage. “Federation is hoarding cooking gas,” NOC said.
The blame game
At a time when consumer rights activists have been blaming petroleum dealers for charging rampant commission, Nepal Petroleum Dealers’ National Association (NPDA) has said that it do not believe High Level Committee report on petroleum sector reform. Even though valley petrol pumps abided by commission rate fixed by NOC, association is officially opposing Bhim Acharya led committee’s report, president of association Saroj Prasad Pande said, adding that it has reduced commi-ssion in baseless way.
Source: THT
