The outstanding dues of the Nepal Oil Corporation to its supplier, the Indian Oil Corporation. Thus increased by Rs8 billion to Rs30 billion in the last two weeks, the state-owned oil monopoly said.
With the government failing to compensate for the shortfall after the oil monopoly slashed diesel. And petrol prices in late June, it has not able to make full payment to the Indian supplier for the last two weeks.
“We paid Rs5.1 billion to the IOC on Friday after paying an equivalent amount last week,” said Nagendra Sah.
Until June 23, the Nepal Oil Corporation owed about Rs22 billion to the Indian supplier.
With the dues piling up, it invited fears among Nepal Oil Corporation officials that the state oil monopoly may force to pay interest on the dues.
“In 2014 when we were unable to make payments on time, we had paid the IOC interest on the dues,” Sah had told the Post last week. “This time also, we might have to pay interest if the dues continue to rise.”
Never in the past did the NOC have outstanding dues in such huge amounts. In March 2014, after the NOC’s outstanding dues to the IOC reached Rs4 billion. The Indian supplier had curtailed the supply of petroleum products by 25 percent.
Even though the corporation used to pay to the Indian supplier on a fortnightly basis. Currently it has been making partial payments on a weekly basis.
