Nepal Oil Corporation (NOC) has sought compensation from Indian Oil Corporation (IOC) for heavy financial losses and brand image damage caused by the IOC’s refusal to provide petroleum products to Nepal.
Writing a letter on Friday, NOC approached IOC to pay for the losses caused over the last 15 days. Figures published by the NOC on its site show that NOC enjoyed Rs 870 million in profit in the second half of September and NOC has claimed that amount from the IOC.
NOC has asked the IOC to compensate for the losses mainly in the last two weeks since the Indian company stopped fuel supplies. “We asked the IOC to respect the agreement between the two parties,” said an NOC official.
In a strongly worded letter, the NOC said the 40-year bond between the two organizations had arrived at a crossroads. “IOC, being a multinational company, should not be involved in such unethical and unreasonable business practices, that too with a longtime business partner like the NOC,” reads the letter.
The NOC used to import 300-350 tankers of petrol/diesel and 35-40 bullets of liquefied petroleum gas on a normal day.
The business losses due to the current embargo have affected the NOC’s move to clear its debt.
In the past one year since the adoption of an automated pricing mechanism, the NOC has reduced its loans to Rs16.64 billion from over Rs35 billion. It owes Rs4 billion to the Citizen Investment Trust and the remaining Rs12.64 billion to the government.Follow @gorkhapost
Petroleum products’ prices go down
KATHMANDU- The Nepal Oil Corporation (NOC) has slashed the prices of petroleum products effective this midnight.
A meeting of the NOC held today reduced the prices of petrol, diesel and kerosene by Rs 2 per litre each. With the adjusted price list, petrol shall cost Rs 112 per litre while diesel and kerosene will be available at Rs 99 per litre, NOC spokesperson Birendra Goit shared.Follow @gorkhapost