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NOC for Automatic Price Adjustment System
By KTM Metro Reporter
December 28, 2013: the state-run Nepal Oil Corporation (NOC) has requested the government for an automatic price adjustment of petroleum products for the smooth supply, according to the RSS news on ‘gorkhapatraonline.com.’ The government owned 98 percent of the shares in the NOC.
NOC has been in loss, as it has not be authorized to set the prices of petroleum products following the international prices, said the officials of the NOC at the news conference held in Kathmandu yesterday.
NOC officials said that the NOC was making a monthly profit of Rs. 420 million from the sale of petrol, kerosene and aviation fuel but the NOC has been paying Rs. 240 million per month as the interest on the loan of more Rs 34 billions.
NOC officials said that NOC would lose Rs. 400 per cylinder it would sell from the next month due to the price rise in LP Gas in the international market. NOC also finding it difficult to manage the supply of diesel as the demand for diesel has been increasing day by day due to the power outage.
Spokesman for NOC Mukunda Ghimire said that supplying petroleum products would become more challenging to NOC in the coming days if there were no price adjustment and if the government were not to waive the loans taken by NOC. NOC officials also demanded that the government should either provide a subsidy equivalent to the losses it incurred every month or to establish a price stabilization fund of Rs. 10 billion for ensuring a regular supply of petroleum products.
