The Nepal Oil Corporation (NOC), which had lost miserably in the past, has gained substantially in the recent years. NOC's profit has increased for the past few years compared to the past.
The NOC has made Rs 8.75 billion in profit after taxes in the fiscal year 2075/076 BS. The state owned enterprise had earned Rs 3.58 billion in the previous fiscal year, officials said. Likewise, NOC's transaction has also increased by almost 25 percent compared to the previous year.
In the last fiscal year, the total business of the NOC exceeded Rs 246 billion against Rs 195 billion of the fiscal year 2074/075 BS.
Acting Deputy Executive Director of NOC Nagendra Sah said that slash of petroleum products in the international market, managerial reform in NOC's and automated price adjustment system of the fuel have contributed to good economic health of the corporation.
Currently, NOC is making profits in petrol, diesel and aviation fuel while it is bearing Rs 162 loss in each LP gas cylinder.
The officials said that the NOC paid Rs 65 billion in revenue in the state treasury in the last fiscal year while the revenue amount was Rs 55 billion in the previous year. The corporation pays customs tax, road maintenance cost, environment cost, VAT and some others in the state treasury. Besides, the government has been collecting additional Rs 5 per litre diesel, petrol and aviation fuel in infrastructure development tax. The government is supposed to invest that money for the development of Budhigandaki Hydropower Project. So far, Rs 40 billion has been collected under the title of infrastructure development tax.
Likewise, the NOC has decided to give 20 per cent cash dividend to its shareholders. Seven different government bodies including Nepal Government, Nepal Bank, Rastriya Banijya Bank, Rastriya Beema Sansthan, Food Management and Trade Company (the then National Trading Limited), Finance Ministry, Industry, Commerce and Supplies Ministry and Department of Commerce have their shares in the NOC.
Source: National News Agency Nepal