Nepal Oil Corporation Earns Rs. 10 Billion in Last Fiscal Year
July 21, 2024 | Investopaper
Nepal Oil Corporation Limited earned approximately Rs. 10 billion in profit for the fiscal year 2080/81. This marks a decrease compared to the Rs. 11.72 billion profit from the previous fiscal year 2079/80.
Despite the increased consumption of petroleum products, overall revenue declined due to a drop in international crude oil prices. At the beginning of the last fiscal year, crude oil was around $76 per barrel, rising to about $81 per barrel by the end. In contrast, the previous fiscal year started with crude oil at $92 per barrel, falling to around $76 per barrel by year-end. Consequently, the lower purchase costs, despite increased import volumes, resulted in reduced overall transaction amounts.
Over the past decade, Nepal Oil Corporation experienced losses only in fiscal years 2077/78 and 2079/80. Significant profits were seen in other years, with the highest being Rs. 19.36 billion in 2072/73. Diesel, accounting for 50 percent of total petroleum imports, saw reduced consumption due to increased electricity availability, particularly in industries and public transportation. Petrol accounts for 24 percent, and gas 19 percent, with aviation fuel and kerosene making up smaller percentages.
In fiscal year 2080/81, Nepal Oil Corporation paid Rs. 272 billion to Indian Oil Corporation for petroleum imports, slightly less than the Rs. 281 billion paid in the previous year. The reduced payment was due to the decline in international crude oil prices. The highest payment made in recent years was Rs. 308 billion in fiscal year 2078/79, during which crude oil prices surged from $72 to $116 per barrel.
