Kathmandu, June 1
The loss of the Nepal Oil Corporation (NOC) is likely to decrease in June as compared to the previous months due to the fall in the prices of petroleum products in international market.
As per the new price structure received from the Indian Oil Corporation (IOC) Friday (June 1), NOC would suffer a loss of only about Rs. 700 million whereas in May its loss amounted to Rs. 1.10 billion.
The estimated loss of the corporation has decreased this month compared to last month due to the fall in the prices of the petroleum products in the international market, said Mukunda Dhungel, spokesperson at the NOC.
Dhungel said that the marginal decrease in the prices of petrol, diesel, cooking gas in the international market would cut the corporation’s projected loss.
He, however, said that the loss of the corporation would not come down significantly despite the fall in the international prices due mainly to the increased values of the US dollar.
The corporation supplies around 17,000 KL of petrol, 65,000 KL of diesel, 6000 KL of kerosene, 1,250,000 cylinders of cooking gas and 10,000 KL of aviation fuels a month.
The reduced prices of cooking gas have contributed to making up the loss of the corporation as it has been selling LPG facing a huge loss, he said.
Earlier, the corporation’s loss in cooking gas alone was at Rs. 1 billion. "We are selling cooking gas by facing a loss of Rs. 453.07 per cylinder this month while per cylinder loss last month was Rs. 598.34," he said.
The local market price of a cylinder of cooking gas is Rs. 1,415.
The corporation has also been selling diesel facing a loss of Rs. 8.53 per litre.
However, NOC will make a profit of Rs. 7.59 from a litre of petrol, Rs. 4.47 from kerosene and 19.73 from a litre of air turbine fuels.
Earlier, the corporation was selling diesel suffering a loss of Rs. 10.31 in a litre. The NOC made a profit of Rs. 4.99 from a litre of petrol, Rs. 3.02 per litre of kerosene and 19.81 per litre of ATFs.
Dhungel asked the government to release the promised funds to the corporation as soon as possible to pay its dues to the IOC.
According to Dhungel, the corporation had received only around Rs.450 million from the government even the government had decided to provide Rs. 2.1 billion.
The government had decided to provide NOC a loan of Rs. 2.1 billion to ease the supply of the petroleum products. Out of the total 2.1 billion, the government would manage Rs. 1 billion from the Citizen Investment Trust and Rs. 600 million from the Employee Provident Fund.
Stating that the outstanding dues of the IOC have reached to Rs. 2 billion, he said that the delay in releasing the loan would affect the supply of petroleum products.