Thursday, 18 July, 2024

NOC to use Price Stabilisation Fund


By Laxman Darnal, Kathmandu, May 21: Nepal Oil Corporation (NOC) has decided to use the Price Stabilisation Fund to compensate for the current loss.

Fund was created to manage volatility in price. Currently, NOC has Rs 12 billion money at the Price Stabilization Fund.

The corporation has borne a loss of Rs 1.10 billion in the span of 15 days. So, it has decided to compensate for the loss through the fund.

NOC spoke-person, Binit Mani Upadhyaya informed that NOC will have a loss of Rs 1.10 billion within the next 15 days so initiative has been taken to use the fund. The Corporation will send letter to the Ministry of Finance for its approval.

Currently, the buying rate of petrol is Rs 63.99 but with the addition of Rs 56.90 tax, the price of petrol crosses above Rs 123. NOC has imposed a one per cent tax for its administrative cost. Apart from this there are commission from pumps, custom duty, infrastructure development tax, environment pollution tax, and tax for price stabilisation fund.

NOC has born loss mainly from LP gas. According to Upadhyaya, NOC lost Rs 560 million from LP gas in two weeks.