NOC begins to make a profit from petrol but refuses to cut price citing accumulated loss

File: Nepal Oil Corporation (NOC) office in Teku, Kathmandu
File: Nepal Oil Corporation (NOC) office in Teku, Kathmandu

Kathmandu, October 17

For the past two weeks, the government-run fuel distribution monopoly, Nepal Oil Corporation (NOC), is making a profit from selling petrol. However, it has been refusing to reduce the price citing the accumulated loss.

The NOC time and again has rushed to increase fuel prices whenever the Indian Oil Corporation, from where it buys fuel, sends increased rates, but it mostly refuses to reduce them citing different reasons if the revised rates it receives from India go down.

As per the new rates the corporation received on Sunday, it is earning Rs 14.56 from selling a litre of petrol. Once accumulated, the petrol trade will give the corporation Rs 390 million in profits in 15 days.

But, the corporation says consumer prices will not be revised as the amount of the accumulated loss is still big.

Even now, the corporation is facing losses in the trade of cooking gas (Rs 325 per cylinder) and diesel (Rs 6.34 per litre) while it is earning profits by selling petrol, kerosene and aviation fuel, according to the corporation.

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