NOC :state owned sinking entity

The Himalayan Times

7 July 2022

NOC :state owned sinking entity

It is not surprising to hear that the Nepal Oil Corporation (NOC) has again raised the prices of petroleum products effective Monday midnight citing losses of billions of rupees due to lack of price adjustment as per the price hike in the international market “NOC hikes price of petroleum products” (THT, July 5, Page 1). It buys petroleum products from India and claims that it has incurred a loss of Rs47 billion in the last 10 months, and this is expected to reach Rs60 billion in the next month. If it fails to clear its outstanding dues within the next month, which does not seem possible by any means, the supply of petroleum products to Nepal might come to a halt or reduced to a meagre volume.

NOC management must have developed a market selling pricing system after topping-up its operational costs plus taxes to be paid to the government for different purposes and commissions to be paid to the petroleum dealers. Being a state-owned entity, it is not supposed to make a huge profit and pay bonuses to its employees. Considering its enormous losses, there seems to be huge leakages both materially and financially here and there, which shows that both the NOC management and the government’s concerned authority are either not aware of them or knowingly making the corporation a milking cow.

Looking at the current pathetic financial positions of both the NOC and the government, an acute scarcity of petroleum products in the county seems to be the scenario not far from today. Unless and until the government continues to invest the huge amount of tax collected fund from petroleum products in non-productive activities, the nation will continue to suffer immensely from fund shortages to buy the required volume of petroleum products, which might ultimately paralyze the daily activities of the nation and the people. Time has come for government and the concerned authority to speed up the construction of national pride hydro projects and consider replacing the petrol-run vehicles with electric ones.

Rai Biren Bangdel

Maharajgunj

Comments

Who is he?

Biren P. Bangdel (also known as Rai Biren Bangdel ) is a development management consultant, project analyst, and citizen journalist based in Kathmandu, Nepal . Professional Profile & Background: Project Executive : He has served as an Executive Director and consultant for organizations like Om Ganeshaya Namah Pvt. Ltd. and Merryknoll Nepal (Asha Deep). He also served as a Campus Director in Weigan and Leigh College .He was Deputy Project Manager in Nepal-Swiss funded Rural Health Development Project and Deputy Team Leader in Nepal-CIDA funded Rural Development Project. Project Expertise : He specializes in managing and monitoring multi-million rupee rural development, healthcare, and educational administration projects across Nepal. His core career history spans executive roles within international non-governmental organizations, bilateral foreign aid bilateral projects , and private management enterprises. Media & Commentary : He is an active blogger, online commen...

2083/84 budget at a glance

2083/84 budget at a glance The Balen led government , which is almost two-thirds majority government secured in the March 2026 elections , has announced its annual budget 2,124.34 billion on May 29, 2026, as the largest budget in Nepal's history, representing a 25.2 present increase over the revised estimates of the current fiscal year 2082/83. Most of the financial experts and economic analysts opine that this budget, although optimistic, has broadly, boldly and wisely covered key and major aspects of the national all round development. Huge tax reforms , massive infrastructure allocations, transformative sectoral policies, 7 percent targets on economic growth and inflation capped at 6 per cent are the key aspects of the highly optimistic budget. This shows a departure from a decade of political instability toward productive governance. It has included first sovereign AI computing centre, doubling of personal income tax exemption thresholds , 21 percent civil servant sal...

Proud to be Gurkhas

King Charles III of the United Kingdom has applauded the formation of King's Gurkha Artillery unit which was formally established in April 2025. The King was greeted with a 21-gun salute at the venue and offered with a large traditional flower garland around his neck. He observed the parade being organised to celebrate the creation of the Army's first dedicated Gurkha Artillery Unit . Over the next three years, 400 Gurkha personnel will join the unit. He highly praised the decade old enduring and deeply valued relationship between the United Kingdom and Nepal . During the event, he met military staff and families and posed for an official portrait with the soldiers. The King's Gurkha Artillery draws upon a long tradition of Gurkha service in artillery roles and continues a tradition of military service to the UK. Source: https://www.bbc.com/news/articles/cddpd45pl56o

HELLO NEPAL

Search This Blog