By A Staff Reporter
Kathmandu, Dec. 29: The profit of Nepal Oil Corporation (NOC) has increased even when fuel consumption has decreased due to the effect of COVID-19.
The corporation has earned profit during the shutdown period since March 24, 2020.
According to the final audit report of the last fiscal year 2019/20 made public by the corporation on Sunday, it has earned a profit of Rs. 12.87 billion in a year through the trade of petroleum products.
The corporation managed to make profit due to savings in the transportation cost as it transported fuel from Motihari-Amalekhgunj Petroleum Pipeline instead of Raxaul and the interest of the previous year's profit, said Surendra Poudel, executive director of NOC.
According to him, the corporation has made a profit of Rs. 1.45 billion by transporting petroleum through the pipeline.
Similarly, the corporation earned Rs. 1.77 billion from interest income, according to its audit report.
The corporation was able to earn profit even when the consumption of diesel and petrol had declined due to the fall in the price of cooking gas in the international market, he said.
“We were able to earn profit in the sale of cooking gas last year because of reduced price in the international market. It is selling cooking gas in subsidy to provide relief to the general consumers,” he told The Rising Nepal.
However, the sales of petroleum products dropped by 10 per cent in the last fiscal year compared to previous fiscal year due to reduction of fuel consumption during the lockdown.
In the fiscal year 2019/20, about 2.5 million kiloliters of fuel worth Rs. 205 billion was imported, which is 10 per cent less than the previous year. Last year, the NOC had earned a profit of Rs. 8.75 billion.
In FY 76/77, 2.5 million kiloliters of fuel worth Rs. 205 billion was imported, which is 11 per cent less than the previous year.
The corporation has paid revenue of Rs. 66.88 billion to the government during this period. The amount collected from consumers as road maintenance fee has reached Rs. 4.99 billion in five years.
The audit of the corporation has shown that Rs. 2.94 billion has been collected from pollution tax.
The corporation has so far collected Rs. 13.98 billion as infrastructure development tax.
The corporation has been adjusting the price in the local market according to the automatic price adjustment mechanism as in the international price.
The corporation has been adjusting the price in the local market as per the price sent by the Indian Oil Corporation (IOC).