June 21: Nepal Oil Corporation (NOC) has decided not to sell petroleum products at a loss. The state-owned NOC stated that such a decision was made since it cannot take any more losses. Until now, the corporation had been selling fuel at a lower price than the actual cost.
The corporation held a press conference at the Ministry of Industry, Commerce and Supplies on Monday and informed that it is no longer going sell petroleum products at a loss.
NOC officials said that the price of petroleum products was increased excessively on Sunday for the same purpose. The corporation increased the price of petrol by Rs 21 per liter and diesel by Rs 27 per liter. According to the NOC, it still has to purchase petrol at Rs 212.58 per liter and diesel at Rs 205.95 per liter. Therefore, the NOC is still incurring a loss of Rs 13.58 per liter on petrol and Rs 13.95 per liter on diesel. The corporation also informed that the price of petroleum products has been adjusted by reducing the infrastructure tax.
Earlier, NOC had been selling petrol at a loss of Rs 31.28 per liter and diesel at Rs 37.16 per liter.
The NOC stated that it needs to sell petroleum products at the cost price as it is no longer in a position to bear such excessive losses.
NOC also informed that a taskforce is being formed to study the price of unused gas. The corporation says further decisions will be made on the basis of the findings of the study.
NOC Executive Director Umesh Prasad Thani said that there is a high probability of fixing two different rates for cooking gas (liquefied petroleum gas). He said that the price of gas for household use and industrial purposes will be fixed differently. A taskforce led by the Director General of the Department of Quality Control and Measurement is studying this issue. The size and color of gas cylinders for household and industrial purposes will be made different.