SANGAM PRASAIN
KATHMANDU, FEB 25 -
With international oil price surging continuously and Indian Oil Corporation (IOC) also curtailing supply, Nepal Oil Corporation (NOC) on Thursday sought Rs 1.3 billion monthly loan from the government to maintain smooth supply of petroleum products.
Earlier, NOC had demanded that the government allow it to adjust fuel prices in line with the international market price. After the government did not allow it to adjust fuel price, it put forth the second option of loan before the government.
The NOC top brass on Thursday held meeting with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari and appraised him about the current problem and possible shortage if the government does not intervene at the earliest.
“Though discussions were held on Thursday, decision on either allowing NOC to adjust price or providing it loan is a political decision,” said a senior official at Finance Ministry.
Now, the NOC is waiting for a political decision. “We informed the Finance Ministry about the current problem,” said Jha.
On Monday, the state-owned oil monopoly had proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) price.
It had also asked the government to waive taxes in LP gas until the price drops in the international market.
The cash-strapped NOC has started curtailing supplies over the last few days citing losses. With Cabinet expansion still in limbo, NOC’s General Manager Digambar Jha is knocking the door of ministers and high-ranking officials to ease the current crisis.
The NOC says its losses jumped to Rs 1.13 billion a month in February. The government’s reluctance in adjusting fuel prices in line with international price, according to the NOC, has inflated its losses. The corporation had last hiked fuel prices on Dec. 6.
According to the NOC, it is incurring a loss of Rs 11.30 per litre in diesel, Rs 5.59 per litre in petrol and Rs 357 per cylinder in LPG.
