Monday, 21st April 2014

NOC says no hike in LPG price

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Nepal Oil Corporation (NOC) has ruled out hike in the price of cooking gas at least for now. It has also pledged to ease the supply system of the liquefied petroleum gas (LPG), commonly called cooking gas.
Officials of the government-owned petroleum supplier, speaking at a discussion programme on Monday, said that the comments regarding the supply and distribution of LP gas circulating in the market lacked truth.
NOC officials said the corporation imported 20 thousand metric tonnes of LPG from India last month and this month in view of the winter. It imported 16 to 17 thousand metric tonnes of LPG in the months before that.
They said arrangements have been made for the supply and distribution of LPG through 55 gas industries so as to maintain a balance between the market and consumer demand by determining a monthly quota of 22 thousand metric tonnes.
Although it appears that there is shortage of LPG in the market to some extent, its price would not increase immediately and its shortage is also next to impossible as the supply system is well-adjusted, according to NOC.
However, it is stated that NOC is incurring a loss of Rs. 755.38 per cylinder of LPG alone. The total loss is one billion 50 million per month.
NOC is selling LPG at a lower price to the consumers compared to its purchase price. The cost of LPG at Barauni of India from where the NOC brings it is Rs. 1,671 per cylinder and its total cost including the cost of transportation comes to Rs. 2,238 per cylinder. But NOC is selling LPG at a price less than this even by bearing a loss of Rs. 755 per cylinder, it is said.
Although NOC is making profit in the sale of some petroleum products, its monthly loss is said to stand at one billion 35 million rupees on the sale of LPG and diesel.