NOC may hike fuel prices again

Nepal Oil Corporation (NOC) is mulling over increasing fuel prices again. The state-owned fuel monopolist is making international preparation to increase the prices of petroleum products after its loss soared due to increasing import bills. Last week, NOC had raised the prices of petrol, diesel and kerosene to cope with the soaring cost of imports amid strengthening US dollar against Nepali rupees. NOC has estimated that it would suffer loss of Rs 1.06 billion for the month between mid-August and mid-September on the basis of fresh price list of petroleum products sent by Indian Oil Corporation (IOC). Meanwhile, NOC have indicated that imports of petroleum products will be disrupted if the government failed to provide it the money to foot the import bills. NOC owes Rs 1.52 billion to IOC. “We are not in a condition to clear the dues unless the government provides financial support,” Suresh Agrawal, acting managing director of NOC, said at a program on Sunday. Agrawal also floated the idea of gradually increasing the prices of petroleum products as an alternative to government´s support to clear its dues. “We have already made a proposal to this extent to the government,” said Agrawal. NOC had suffered loss of Rs 3 billion in 2012/13.