Companies always look for more sales for having more profit. This is the general rule and there is no exception. No company wants to sell less- do they. Well, sometimes exceptions happen. Nepal Oil Corporation (NOC) has found itself in such an exceptional situation. It is a state owned corporation and it ensures oil supply in the country. Nepal is totally dependent on imported oil and the price of oil in international market is only going in one direction for the last few months- upward.
In Nepal, most people are poor and they cannot afford to buy oil at the rate of international market. As a result, NOC is selling oil at a lower price than its economic cost. So, the more oil people buy the more loss NOC suffers. It is now suffering $10 million of monthly loss. Thus, the company is not only suffering financial losses but also it is suffering crisis of cash. NOC buys petroleum products from Indian Oil Corporation and paying Indian Oil Corporation has become a major headache for NOC. Feeling helpless, NOC officials have called on Nepalese people to consume oil as less as possible. My full sympathy remains with NOC officials. I would also urge donor countries like Japan to support NOC and Nepalese government.
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