Kathmandu, September 18 :

Officials of Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) today held a meeting at the ministry of industry, commerce and supplies to discuss about price adjustment in petroleum products and their supply in the Nepali market.

They also discussed the issued of timely repayment of dues to IOC which has gone up to over seven billion rupees.

The meeting was held at a time when high powered committee headed by former finance secretary Bhanu Prasad Acharya is completing its review report on petroleum products’ prices and supply management which was formed a month ago after the government revoked price increment decision of petroleum products on petrol, diesel, kerosene, LPG and aviation fuel.

The committee is scheduled to submit its report to the government, after studying in detail about ‘petroleum products’ prices and their management in two days, says a source at the ministry of industry, commerce and supplies. The committee is likely to recommend the government to increase the prices of petroleum products citing lack of alternatives.

According to a source, the IOC delegation led by R Ramana, general manager-international marketing, discussed with Acharya and his team members issues regarding petroleum products’ smooth supply and price adjustment mechanisms.

NOC’s total outstanding loans to IOC and domestic commercial banks account to over Rs 11 billion, says NOC officials. During the meeting, a discussion was held to continue the smooth supply of petroleum products from IOC.

Government and NOC officials are also leaving for India tomorrow with a view to discuss with IOC about petroleum products supply management, repayment mechanisms and ways to adjust prices after petroleum products land in Nepal from India.

Tej Ratna Shakya, joint secretary at ministry of industry, commerce and supplies is leading the Nepali team tomorrow. During the meeting with IOC, the Nepali delegation is scheduled to discuss IOC and NOC agreement on supply of petroleum products as the accord is expiring on March 7, 2007.