Nepal Oil Corporation (NOC) has recorded a net profit of Rs 13.64 billion in the last fiscal year, reflecting a significant improvement in its financial health and operational efficiency. The figures were made public during the corporation's 56th anniversary on Saturday.

Presenting the financial performance, NOC Executive Director Dr. Chandika Prasad Bhatt said the state-owned fuel monopoly is steadily moving toward financial stability after years of losses and structural weaknesses. According to him, the corporation recorded total business transactions worth Rs 367 billion during the period and contributed Rs 124 billion in revenue to the state treasury.

Dr. Bhatt attributed the turnaround primarily to the automatic fuel pricing mechanism introduced in 2071 BS, calling it a “milestone” in the corporation’s history. He said the pricing system insulated the corporation from political interference, reduced losses, and ensured timely price adjustments in line with international markets.56th annivers

Infrastructure development has also played a critical role in strengthening NOC’s balance sheet. The operation of the 72-kilometer Motihari–Amlekhgunj petroleum pipeline and the 17,000-kiloliter storage facility at Amlekhgunj has significantly reduced transportation costs. As a result, consumers have benefited from fuel prices being lowered by around Rs 2 per liter, according to the corporation.

In terms of supply, NOC annually distributes around 63,000 kiloliters of petrol, 222,000 kiloliters of diesel, 18,000 kiloliters of aviation fuel, and 46,000 metric tons of liquefied petroleum gas (LPG) across the country.

To curb fuel theft and leakage, flow meters have been installed at major depots in Amlekhgunj, Bhairahawa, and Thankot. The corporation has also implemented an Enterprise Resource Planning (ERP) system that allows dealers to place fuel orders via mobile platforms, reducing human intervention and improving transparency, Dr. Bhatt said.

Looking ahead, NOC plans to diversify beyond conventional fossil fuels and transition toward cleaner energy. From this year, the government policy of blending ethanol with petrol will be implemented. In collaboration with Kathmandu University, the corporation is also working on the commercialization of green hydrogen, with the aim of supporting Nepal’s target of achieving net-zero carbon emissions by 2045.

The corporation has initiated studies to convert NOC into a public limited company and issue shares to the general public through an initial public offering (IPO). Preparations are also underway to introduce large 450-kilogram LPG cylinders for commercial use.

Despite operational challenges, Dr. Bhatt noted that NOC manages daily distribution of around 7.5 million liters of petroleum products and 1,500 metric tons of LPG nationwide with nearly 700 permanent and 300 wage-based employees.

Expansion plans include opening new fuel stations at 37 locations in remote areas and constructing a new depot in Karnali Province. The corporation is also preparing to relocate depots in Sinamangal, Bhairahawa, and Dhangadhi due to security risks.

The anniversary program was attended by Minister for Industry, Commerce and Supplies Anil Kumar Sinha, senior government officials including secretaries Dr. Ram Prasad Ghimire and Madhusudan Burlakoti, and Public Service Commission Chairperson Madhav Prasad Regmi.

Speakers at the event praised NOC’s recent progress in technology adoption and financial governance, while urging the corporation to further strengthen transparency and institutional discipline in the years ahead.