KATHMANDU: Nepal Oil Corporation (NOC) is set to incur loss for the first time in more than two years. The state-owned fuel supplier has projected a monthly loss of around Rs70 million for January, as it has not been able to review fuel prices in line with the international market rates. Based on the new tariff sent by its supplier Indian Oil Corporation (IOC) on January 2, NOC has projected loss of Rs78.24 per LPG cylinder and Rs1.50 on a litre of diesel. NOC, however, will enjoy profits of Rs15.12 and Rs7.50 per litre on jet fuel sold to international and domestic carriers, respectively. Its projected profits on kerosene and petrol stands at Rs15.14 and Rs1.33 per litre, respectively.
NOC adopted automated pricing system on September 29, 2014, under which it has to revise fuel prices fortnightly based on the tariff forwarded by IOC. It has not faced losses ever since it adopted the auto pricing mechanism, largely due to falling international market prices. Last December, NOC had raised prices of petrol, diesel and kerosene each by Rs4.50 per litre, citing fuel smuggling to India due to the difference in prices. As the hike drew massive criticism, the Parliamentary Industry, Commerce and Consumer Welfare Committee had asked NOC to roll back the hike. NOC Spokesperson Bhanubhakta Khanal said the losses widened as NOC was unable to raise prices due to pressure from all quarters. He said NOC’s cumulative profit currently stands at Rs7.4 billion.
