Kathmandu, Apr. 25
The number of vehicles lining up for petrol and diesel has been increasing day after day in the Capital and other parts of the country due to a short supply of the petroleum products.
The Nepal Oil Corporation (NOC) has cut down on the supply of fuels considerably because of its increasing outstanding dues to be paid to the Indian Oil Corporation (IOC).
According to NOC officials, the IOC has curbed the supply of petroleum product to NOC by around 35 per cent because of the growing outstanding dues.
NOC had asked the government to provide Rs. 2 billion immediately to ease the supply of petroleum products. But the government has yet to respond to the proposal.
Lilendra Prasad Pradhan, President of Nepal Petroleum Dealers Association (NPDA), however, said that such a fund provided to the NOC will not be a long-term solution to the fuel supply problem.
He stressed the need to make a mechanism for the permanent solution to the problem.
He said that almost all the petrol pumps remained closed from early in the morning during the last two days.
Despite an increment in fuel prices, the NOC is still supplying diesel, kerosene and cooking gas at prices fixed earlier incurring a loss.
NOC suffers a loss of Rs. 12.63 in a litre of diesel and Rs. 802 in a cylinder of cooking gas.
However, NOC is making a profit of Rs. 0.63 in a litre of kerosene, Rs. 1.65 in a litre of petrol and Rs. 15.88 in aviation fuel.
NOC will suffer an estimated loss of Rs. 1.56 billion in April as per the current price structure received from IOC.