Govt to give Rs 1.5 billion loan to NOC

Kathmandu, Dec. 23 The government on Friday took a decision to provide the Nepal Oil Corporation (NOC) with a loan assistance of Rs. 1.5 billion in order to improve the supply of the petroleum products and stop the rise in the process of fuels. The decision was made by a meeting attended by Prime Minister Dr. Baburam Bhattarai, Minister for Finance Barshaman Pun and Minister for Commerce and Supplies Lekhraj Bhatta. The meeting was held at the Prime Minister’s Office at Singha Durbar today. After the meeting, Minister Pun informed the journalists that the government would make available the amounts to make up for the loss the corporation has been facing. "We also decided to ensure the supply of fuels throughout the country at least for three months," he said. He also informed that the government would take yet another decision concerning the fixation of prices of the petroleum products for long-run. Meanwhile, Mukunda Dhungel, spokesperson at the NOC, told The Rising Nepal that the scarcity of diesel had reached a critical position in the market because the corporation failed to pay dues to the Indian Oil Corporation (IOC). "Considering such a difficult situation of the fuel supply, the government should manage loans at the earliest possible," Dhungel said. IOC loaded only about 1,300 KL of diesel at Raxaul on Friday as compared to about 1,900 KL on Thursday, he said. "IOC has been providing us with diesel as per our payment ratio," he said. He said that NOC imported fuels worth IRs. 3.5 billion this month (December), but it has paid only IRs. 3.07 billion. "Our dues have exceeded IRs. 600 million," he said. He said that the corporation would not be able to supply fuels by taking loans now onwards. He said that the government should address frequent problem of diesel through a long-term plan. Earlier, the Nepal Petroleum Dealers’ Association (NPDA) had warned of a fresh strike if the government did not ensure a regular supply of fuels. The association announced that it would stop the supply of fuels nationwide from January 11 next year if the government failed to fulfill their demands. The association also urged the government to remove the duel pricing, ensure the supply of fuels and implement the agreement signed with it.