Nepal Oil Corporation has paid off government debt of Rs 7 billion.

After payment of Rs 700 million to the public debt management office of the Ministry of Finance, its debt burden of Rs 7 billion of the government is paid off, said spokesperson of NOC, Manoj Kumar Thakur.

He said that all the government debt is paid off.

He said that NOC witnessed loss due to price rise in crude and refined oil since 2020. Thakur said that NOC incurred loss of Rs 50 billion due to price hike.

NOC had obligation of Rs 33 billion to Indian Oil Corporation. Thakur informed that NOC had taken Rs 3 billion from commercial banks and Rs 7 billion from government, now all the obligation is paid off.

NOC internal obligation of Rs 26 billion

NOC has now internal debt obligation of Rs 26 billion. Spokesperson said that there is no need to pay interest in the internal debt so it will reduce the obligation burden to NOC.

Thakur informed that there is Rs 21 billion in price stabilazation fund, Rs 2 billion of mortgage of airline and sellers and Rs 3.2 billion of employee resident as internal debt.

NOC witness loss after automated pricing system

Spokesperson Thakur informed that NOC witnesses Rs 6 billion loss in 15 days in current price. NOC has loss of Rs 300 per cylinder of cooking gas.