Kathmandu, May 3 :

The outstanding dues to be paid to Indian Oil Corporation (IOC) by Nepal Oil Corporation (NOC) as of May 1, 2006 comes to Rs 5.76 billion.

An already distressed NOC can hardly see the light at the end of the tunnel as prices of crude oil keep hovering close to an all time high in the global market.

By April 15, NOC had to pay about four billion rupees to IOC. The amount on May 1, has climbed to Rs 5.76 billion.

NOC has to pay Rs 20 million to Birgunj customs on a daily basis which has been close to impossible recently, senior NOC officials told The Himalayan Times.

Umesh Dahal, acting executive director of NOC, commented that NOC is facing serious financial problems, due to the rise in international prices of petroleum products. According to Dahal, NOC losses at present comes to Rs 580 million on a monthly basis, which was Rs 380 million only, at the close of April 16.

The management is in a sea of troubles as its attempts to raise loans from commercial banks have turned futile. According senior officials at NOC, who did not want to be named, commercial banks’ loans have already reached Rs 4.44 billion.

Currently, the market price of petrol stands at Rs 67 per litre, diesel Rs 52, kerosene Rs 48, ATF Rs 54 and Rs 900 for a LPG cylinder in Nepal.

The import duty imposed by the government of Nepal on petrol stands at Rs 26 per litre, diesel Rs 11, kerosene Rs 2, ATF Rs 9.50 and for LPG, Rs 203 per cylinder.

At the current rate, per litre prices should go up by Rs 9.50 for petrol, Rs 11.50 for diesel, Rs 6.50 for kerosene, four rupees for ATF and Rs 150 for per cylinder of LPG even to reach a break-even point, according to NOC officials.

Dahal said that the international price of petroleum products per barrel has already reached $75 per barrel, which is a record high.

It may go up further in days to come, Dahal feared. Given the background, he called for timely intervention from concern authorities.

Despite NOC not having paid its dues to IOC in time, IOC has not stopped supplying petroleum products to Nepal.