Apr 7, Kathmandu-  Nepal Oil Corporation (NOC) is in financial crisis after all the reserves, including price stabilization, were depleted due to excessive price rise of petroleum products in the international market. The Indian Oil Corporation (IOC) alone cannot afford to pay the amount sold.

After all the reserves of the corporation were emptied, the corporation had to take a loan to repay the IOC. Stakeholders say that there are two options to save the corporation from the financial crisis.

That the government should allow the price of fuel to increase on the basis of cost price or that it should reduce the tax on fuel. The government should save the corporation from the financial crisis by reducing taxes as consumers will be hit hard if the price of fuel is increased on the basis of cost price.

When the corporation is in a financial crisis, it becomes difficult to buy fuel from IOC, and consumers are hit. The corporation has incurred a loss of around Rs 33 billion in the last eight and a half months due to a continuous rise in prices in the international market.