Rs 13bn collected from petroleum import

KATHMANDU: The government has so far collected Rs 13 billion for the construction of the 1,200-megawatt Budhigandaki Hydroelectricity Project from the import of petroleum products.

As envisioned by the budget for the fiscal 2016-17, the government has been levying additional charge of five rupees per litre on import of petrol, diesel, kerosene and aviation turbine fuel to raise funds for BHP, a national pride project.

Nagendra Shah, deputy executive director of NOC, said the amount to this effect had been collected within less than one-and-a-half years.

While the collection of such extra charges on fuel might contribute to the construction of BHP, it has also added financial pressure on NOC.

With global fuel price on the rise, NOC has started facing losses after more than a year. The state entity, which was able to pay back more than Rs 36 billion in dues to the government in the past few years owing to decline in global fuel price, is facing loss amounting to Rs 550 million a month.

NOC Spokesperson Birendra Goit attributed the loss of NOC to inability to adjust fuel prices in accordance with the international rates. “NOC has been unable to adjust fuel prices as per the rates sent by Indian Oil Corporation in the domestic market owing to upcoming elections,” said Goit.