Happy days are over, NOC stares at loss again

After a long spell of profit, the Nepal Oil Corporation (NOC) - the state oil monopoly - has again plunged into the red.
As per the new rates, which the NOC received today from its sole supplier Indian Oil Corporation (IOC), its losses will be around Rs 200 million monthly, said Mukunda Prasad Dhungel, spokesperson, NOC.
In July, NOC earned a profit of Rs 120 million. But, as per the rate on August 1, the organisation broke even since it was paying the outstanding debts and interests on loans, which were taken earlier.
The NOC's cumulative loss was around Rs 17 billion. Fortunately, it managed to whittle down the outstanding amount to Rs 10.80 billion, thanks to falling international crude prices.
But, the northward movement of global oil prices has forced the IOC to increase the fuel prices. "The new buying rate for diesel at Raxual Depot is Rs 43.98 per litre, up from Rs 41.02. While, petrol is at Rs 43.18 per litre, up from Rs 39.16," he said.
The retail price is fixed after adding 13 per cent VAT, transportation cost, road maintenance tax, customs, pollution tax and the dealers' commission.
"The current retail prices of petrol - at Rs 77.50 per litre - and diesel - Rs 55 per litre - has to be revised. Else, the NOC will have to bear the loss," Dhungel added.
The NOC started making profit when the downward revision of prices started in October, 2008, which continued till March.
Every month - on 16th as per the Roman calendar - the NOC receives a new price list for petrol, diesel from the IOC.
However, on the first of every month, it receives the new price list for petrol, diesel, kerosene, Air turbine Fuel (ATF) and cooking gas.

Importing depots, refinary
For Eastern Region -- Barauni Refinery
For Central Region -- Raxual Depot
For Western Region -- Betalpur Depot, Mugalsari Terminal
For Mid Western Region -- Allahabad Ternimal, Gonda Depot
For Far Western Region -- Banthara Depot

NPDA-Labour talks on Tuesday
KATHMANDU: The ongoing dispute between the Nepal Petroleum Labourers' Union and the Nepal Petroleum Dealers' Association (NPDA) has hit the supply of petroleum products across the nation. In the capital, fuel is available only at petrol pumps run by the Nepali Army, Nepal Police and Sajha for the last two days. On Sunday, though talks between the two warring sides failed, there will be another round of dialogue on Tuesday. The labour union is demanding minimum monthly salary of rs 6,000, uniform and other benefits.