October 19: The loss of the Nepal Oil Corporation has increased with the continuous rise in the price of petroleum products in the international market.
The price of petroleum product has skyrocketed worldwide due to the unnatural rise in the price of crude oil in the world market. The price of crude oil in the international market reached US$ 85.58 per barrel on Monday.
According to the latest price list sent by the Indian Oil Corporation (IOC) on October 16, the NOC’s losses are expected to increase further. Spokesperson Binit Mani Upadhyaya informed that the fortnightly loss of the corporation is projected to exceed Rs 2.22 billion as per the price list received from IOC on September 15.
According to the new price list sent by the IOC, the price of petrol has been increased by Rs 5.77 per liter and diesel and domestic and international aviation fuel by Rs 7.9 per liter.
NOC has to purchase petrol for Rs 145 per liter, diesel for Rs 127.16 per liter, kerosene for Rs 93.41 per liter, domestic aviation fuel for Rs 90.56 per liter, international aviation fuel for Rs 82.13 per liter, and LP gas for Rs 1,961.88 per cylinder.
However, the retail price of petrol in Kathmandu has been fixed at Rs 130 per liter. Similarly, the price of diesel and kerosene has been fixed at Rs 113 per liter, domestic aviation fuel at Rs 86 per liter, and LP gas at Rs 1,450 per cylinder.
The corporation will have to bear a loss of Rs 15 per liter on sale of petrol, Rs 14.16 for diesel sales, Rs 4.56 per liter for the sale of domestic aviation fuel, and Rs 511.88 per cylinder of LP gas.
NOC has a modest profit only on kerosene and international aviation fuel. The corporation earns Rs 19.59 per liter from the sale of kerosene and Rs 10.37 per liter from the sale of international aviation fuel.
Rising fuel prices in the global market have hampered the corporation's efforts to reduce losses. The increase in purchase price has added a challenge to the corporation, which has been making a profit by reducing past losses. The corporation had gradually turned to a profitable organisation by repaying a loan of Rs 37 billion six or seven years ago. Last year, the corporation again incurred a loss of around Rs 3 billion. Spokesperson Upadhyaya said that the corporation has incurred a loss of Rs 6 billion in the last three months.
It is feared that the supply of petroleum may be disrupted as the corporation is running at a huge loss. While the corporation is constantly running at a loss, it can also affect the supply system, said a corporation official.