Nepal Oil Corporation has about Rs22 billion in outstanding dues to pay to the Indian Oil Corporation of June 23. With the government not implementing its own decision of compensating the state-owned oil monopoly for reduction of fuel prices. So far, officials at the corporation expect the dues to rise in the days to come.
Now, their fear is that the NOC may force to pay interest on the dues to pay to the Indian supplier.
They had paid interest for the dues in 2014 to the IOC when it piled up after failing to make payments. Now, there is this possibility they may have to pay interest if dues continue to go up.
The government announced to reduce diesel and petrol prices by Rs29 and Rs20 per litre on June 25. Therefore, thinking that the deficit will adjust slashing the price. The decision has not been implemented yet, forcing NOC to continue to pay the taxes.
NOC is now preparing to take a loan of Rs3 billion from Rastriya Banijya Bank.
