Saturday, October 8, 2022

NOC projects profits

After almost one-and-a-half year, the bankrupt state oil monopoly has projected a profit of Rs 1.60 billion per month after a successive drop in the crude prices in the international market.

According to Nepal Oil Corporation (NOC), it now makes a profit of Rs 6.45 per liter in petrol and Rs 12 per liter in diesel at the new price rates sent by IOC on October 1. IOC sends price list every fortnight on the 1st and 15th of the Gregorian calendar.

Last March, the oil price in the international market reached as high as $125 per barrel, while it came down to $86 per barrel last week. Indian Oil Corporation (IOC), the sole supplier to the NOC has also decreased the price of fuel but the NOC has not been bringing the fuel price down, though it claimed to implement the automated price system. “The NOC has been misusing the automated price system as it increases the price of fuel when the price list sent by IOC increases but it has not been decreasing the price, when the price list has lower price,” complained the consumer rights activists. 

The NOC has been claiming that it has borrowed from the government to pay the IOC, and it owes around Rs 40 billion to various government bodies.

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