Govt not to revise POL prices, no more loan to NOC

Finance minister Dr Ram Sharan Mahat has said the current government will neither hike the petro prices nor will grant more loan to Nepal Oil Corporation (NOC).

Despite the acute shortage of the POL products in the market because of the failure of the NOC to pay dept to Indian Oil Corporation, Dr Mahat said the government is not in a position to revise the current market price of the oil.

A week after the government granted Rs 800 million to NOC, Dr Mahat clarified the government would not continue lending.

NOC had asked the government to provide Rs 2 billion loan or to revise the POL prices.

According to NOC, as the prices of the oil continue to rise in the international market, monthly losses to the company have crossed Rs 1.67 billion. The dues of the company has crossed Rs 13 billion, including Rs 6 billion loans from the government, Rs 2.15 billion from commercial banks, Rs 2.50 billion from Citizen Investment Trust (CIT) and Employees Provident Fund (EPF). Similarly, NOC has dues at Rs 2.50 billion with IOC.

The supply has been cut by over 50 percent as the result of IOC denying supplying oil without paying the dues. nepalnews.com ia May 19 08

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