KATHMANDU, July 2: Nepal Oil Corporation (NOC) has projected to earn Rs 900 million in the next 15 days at the newly set prices of petroleum products.
On Sunday night, the state-owned oil monopoly raised the price of petrol by Rs 2 per liter and that of diesel by Rs 5 per liter. It has attributed the new price list sent by its supplier Indian Oil Corporation behind increased prices.
At the revised prices, the NOC earns profit of Rs 3 per liter in petrol and Rs 5 per unit in diesel trade. The loss in cooking gas has come down to Rs 178 from Rs 277 per cylinder.
Likewise, the profit margin in aviation fuel used for domestic purposes is Rs 20 per liter, while the petroleum used in aviation fuel for international flight gives the corporation a profit of Rs 40 per liter.
Time and again, the NOC has been blamed for charging high prices on its products, just to secure exorbitant profits. In many cases, the public enterprise is found not reducing prices on par with the international prices of petroleum products, though it is supposed to go with the automated pricing system.
About two and a half years ago, when the Russia-Ukraine war broke out on February 24, 2022, the NOC’s cumulative loss crossed Rs 38 billion. Taking benefit of the soaring oil prices, the public enterprise has already recovered its financial position.