NOC asks 2 billion from government for smooth supply of fuel
KATHMANDU: Few days after it revoked the decision of hiking the price of liquefied petroleum gas (LPG) by Rs 630 per cylinder the State-owned petroleum monopoly Nepal Oil Corporation (NOC) has requested the government to provide two billion rupees for smooth supply of petroleum products.
The NOC warned that it will not be able to provide a regular supply of fuel in the market if the government doesn’t give it money to pay for its imports. According to NOC sources the Indian Oil Corporation has started reducing shipment to NOC as it failed to clear the dues. According to reports IOC has reduced 25 percent supply of fuel to NOC. They further informed that due to reduced supply from IOC, NOC is drawing fuel from its stock to maintain regular supply of fuel. NOC’s reserves of 71,558 kl can fulfill the country’s gasoline demand for less than five days.
The demand of diesel and petrol goes up during the winter when load-shedding hours are extended. The daily demand for diesel and petrol in the valley surges to 600 kl and 450 kl respectively.
Meanwhile, NOC which is in debt to the tune of Rs 28 billion, has been incurring monthly losses of Rs 634 million by selling fuel at subsidized rates. Similarly, NOC presently owes Rs 800 million to IOC
On Feb 13, NOC ramped up the price of liquefied petroleum gas (LPG) by Rs 630 per cylinder to Rs 2,100 with the blessing of the government. The price hike was part of the corporation’s subsidized and non-subsidized pricing system. But prices were rolled back the next day following howls of protest from all quarters. NOC presently offers subsidies of Rs 587 on a cylinder of LPG and Rs 3.79 on a liter of diesel to all users. The government has been providing money to NOC to maintain smooth supply of fuel.
Published Date: Tuesday, February 26th, 2013 | 11:24 PM