Fuel Supply will Be Regular from Tuesday Says NOC - Business

Fuel Supply will Be Regular from Tuesday Says NOC

Nepal oil corporation

19 APRIL- 2014 – KATHMANDU Nepal – The Ill fated Government supplier of Oil and Gas has confirmed that the resumption of oil supply will be from next Tuesday as it is planning to pay the dues over 5 Billion Rupees to Indian oil corporation which has resulted in shortage of petroleum product in Nepal for a week or more.

Amid shortage of petroleum products, Nepal Oil Corporation ( NOC ) has said the supply will ease only from Tuesday.

NOC said petrol imports through Raxaul increased to 500kl on Friday from 400kl on Thursday. “The diesel supply, however, stands at 450kl compared to normal supply of 550kl daily,” said NOC ’s officiating Managing Director Sagar Satyal.

The supplies increased after NOC pledged Indian Oil Corporation (IOC) to clear Rs 5 billion dues by Tuesday.

The government on Thursday agreed to provide Rs 2.5 billion in loans, and the NOC said it is in the process of receiving the amount from the Ministry of Finance.

The Finance Ministry has asked the Employees’ Provident Fund and Citizen Investment Trust to arrange Rs 1.5 billion and Rs 1 billion, respectively, to bail out NOC temporarily.

With NOC unable to finance its import bills (Rs 5.18 billion), IOC has cut down oil supplies, resulting in a shortage.

NOC officials claimed the diesel stock could meet the valley’s demand for the next 4-5 days, while the petrol stock can sustain the demand for the next 2-3 days.

Commerce Minister Sunil Thapa said the government will take a decision on petroleum price adjustment only after the report of the Parliamentary Panel on petroleum products price hike comes out.

Meanwhile, an 11-member parliamentary panel formed to recommend measures to reform NOC is considering waiving taxes, including value added tax (VAT) imposed on liquefied petroleum gas (LPG). The initiative will cut around Rs 330 million in NOC ’s monthly losses.

The government collects Rs 251.91 on a LPG cylinder in VAT and custom duty. NOC incurs Rs 1.03 billion loss on its LPG business.

NOC has adopted cross-subsidy measures to cut losses. For example, it has been enjoying Rs 212 million monthly profits on petrol, Rs 304.7 million on aviation fuel sold to international carriers, Rs 108.9 million from the fuel sold to domestic carriers, and Rs 28.1 million on kerosene.

NOC ’s monthly losses on diesel stand at Rs 259.9 million. In aggregate, the corporation’s monthly losses stand at Rs 640.4 million, as per the April 16 tariff sent by IOC.

As a Public, This columnist do not understand why has so many times, Nepal oil corporation has dues to pay to the supplier of its products in India? I have never seen any public taking petrolium product for free either government is rationed to the public.

where does those money paid by the customers goes to? Untill when we have to suffer?

Please do write your comment as part of the campaign to awake our government from this long dramatic sleep.

Source: Based on KOL