Nepal Oil Corporation (NOC) has clarified that the price of petroleum products would not go down though the Indian Oil Corporation (IOC) is supplying petroleum products at cheaper price than before.
As NOC is currently bearing loss of Rs 27 billion, the price of petroleum products would not be adjusted, it said.
Issuing a statement on Friday, NOC stated that it has been operating at a loss for a long time due to fluctuations in the price of refined petroleum products in the international market.
According to the purchase price received from IOC on December 1, the price of LP gas has increased slightly, while the prices of petrol, diesel, aviation fuel and kerosene have decreased.
"According to the purchase price list received on December 1, the price of LP gas has increased by Rs 43.93 per cylinder. NOC is currently incurring a loss of Rs 277.02 per cylinder in LP gas," the statement read, adding, "The corporation has to pay out about Rs 27 billion, including the amount owed to the IOC, old arrears and debt owed to the Government of Nepal."
According to NOC, from the sale of gas cylinders only, it will incur a loss of Rs 368.5 million in 15 days. Even as the prices of petrol, diesel, jet fuel and kerosene are reduced and NOC keeps current market price intact, it will make a profit of Rs 580 million in 15 days.
"Currently, the retail price of petroleum products has been kept unchanged since NOC is struggling to maintain the supply of petroleum products, manage arrears of IOC and debt owed to the government as the price of refined petroleum products is fluctuating in the international market," read the statement.
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