NOC said that it had settled its liabilities with various lending agencies and Indian Oil Corporation (IOC) worth Rs9.65 billion since it adopted an automatic pricing system on September 29.
After implementing the system, the state-owned oil monopoly has been earning profits with a fall in global petroleum prices. Currently, NOC makes a profit of Rs12.60 per litre of petrol, Rs3.49 per litre of diesel and Rs23.90 per litre of kerosene. However, it suffers a loss of Rs48.08 per cylinder of LPG as it is sold at a subsidized price.
Of the total payments made, NOC has paid Rs5.15 billion to IOC, Rs1.5 billion to the Employee Provident Fund and Rs3 billion to the Citizen Investment Fund. NOC’s liabilities still stand at Rs31.66 billion out of which it owes Rs12.64 billion to the government. NOC has been mulling converting the money it owes to the government into its paid-up capital. The Finance Ministry is reported to be studying NOC’s proposal.