Jan 18, Kathmandu- Nepal Oil Corporation has stated that it has not been able to pay the purchase price of oil as its accumulated profits have been emptied.

The corporation has issued a statement stating that it is necessary to take a loan to buy oil. The corporation has stated that it has to take a loan to repay the purchase price of oil from this month as it has not been able to adjust the price in Nepal as per the increased price in the international market.

It is mentioned in the release that about 2 billion rupees have to be paid to the Indian Oil Corporation for the purchase of fuel. This is an insufficient amount to be paid on January 23. The corporation has stated that it has to take a loan or use the remaining amount in the price stabilization fund for its management.

The corporation has a deficit of Rs 19.26 billion till mid-January and the loss will reach Rs 21.50 billion after the new price received from the Indian Oil Corporation on January 14, said Puskar Karki, co-spokesperson of the corporation. He said that even if the price is adjusted, there is a deficit of around Rs 4 billion per month.

The corporation has stated that an additional amount of Rs 12 billion is needed to maintain the supply of petroleum products across the country for the next three months. At present, the corporation claims a loss of Rs 13.18 on petrol, Rs 8.81 on diesel, and Rs 646.16 per cylinder on cooking gas.

According to the corporation, kerosene has a profit of Rs 20.50 per liter and aviation fuel has a profit of Rs 14.73 per liter.