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NOC set to cancelling infrastructure costs



KATHMANDU, Jan 13: Nepal Oil Corporation (NOC) is arranging to cancel the infrastructure cost it has been collecting in petroleum products which will come into effect from February 1st (Magh 19), reported NOC director Nagendra Shah.

NOC has been facing continuous objection and protests after it decided to raise charges for infrastructure development since 2014 (2071). Sources also say that NOC has used the money it obtained in the name of infrastructure development to pay debts.

These charges include Rs 5 per liter in petrol, diesel and kerosene, Rs 10 in aviation fuel and Rs 50 per LPG gas cylinder.

According to reports, NOC collects about 30 to 35 crore monthly. The figure will be used build oil tanks.

The government has been drawing Rs 5 per liter from consumers for the construction of Budigandaki project since May 28, 2016 (Jestha 15).

Similarly, The charges include Rs 00.51 paisa per liter in petrol, Rs 00.31 per liter in disel and kerosene, Rs 00.43 per liter in aviation fuel and Rs 6.63 per gas cylinder for price regulation fund.

Likewise Rs 00.50 per liter in diesel and petrol as pollution fee and Rs 4 per liter in petrol and Rs 2 per liter in diesel as roadway reconstruction tax is being collected.

NOC says the corporation is operating in loss after the price of raw oil raised globally. “NOC which gained 28 crore in profit last month has bore Rs 4 crore loss in January. The loss has been experienced after price rise in petroleum in India. According to new price, the corporation is facing high loss in diesel and gas.” said spokesperson of NOC, Bhanubhakta Khanal.
“The loss amounts to Rs 9/ltr in diesel, Rs 7.22 per gas cylinder while the profit is Rs 2.16/ltr, Rs 1.33/ltr and Rs 1.61/ltr in petrol, kerosene and aviation fuel.” he added.

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