NOC pays Rs 18.26 billion to IOC, lenders

KATHMANDU, July 6:

Nepal Oil Corporation (NOC) made payments of altogether Rs 18.26 billion to its supplier -- Indian Oil Corporation (IOC) -- and different lending agencies in the first 11 months of fiscal year 2014/15.

According to NOC officials, the state-owned petroleum monopolist paid Rs 6.85 billion to Employees Provident Fund (EPF) and Rs 5.93 billion to Citizen Investment Trust (CIT) in principal and interests. Similarly, it cleared Rs 5.48 billion worth of outstanding dues with IOC.

While NOC has cleared its dues with IOC, it still owes Rs 6 billion to EPF and Rs 3 billion to CIT.

The debt-ridden NOC manage to make good profit in this fiscal year due to significant drop in price of crude oil in the international market. Similarly, the automatic pricing mechanism introduced by the government provided to be of great help to NOC.

"We have been recording average monthly profit of Rs 1.20 billion," Gopal Bahadur Khadka, managing director of the corporation told Republica, adding, "Drop in crude oil price in the international market helped us a lot."

Price of crude oil had plunged to six-year low of US$ 43 per barrel in April last year.

At present, NOC enjoys profit of Rs 10.12 per liter on petrol, Rs 4.04 per liter on diesel and Rs 20.52 per liter on kerosene. Its loss on LP gas has dropped to Rs 17.28 per cylinder.

NOC, however, has not adjusted fuel prices for the past two months. Officials say fuel price will not be adjusted in July as well. "We won't adjust fuel price in July as there has been significant change in price as per the rates forwarded by IOC," NOC Spokesperson Mukunda Ghimire told Republica, adding, "Price will be adjusted only if there is significant change in price rates sent to us by IOC."

According to rates forward by IOC, price of petrol and diesel for July has increased by 80 paisa and 71 paisa per liter, respectively.

Meanwhile, NOC has deposited Rs 2.60 billion in Price Stability Fund (PSF) in the first eleven months of the 2014/15.

Source: Republica