Nepal Oil Corporation is now suffering cash shortage as it is just incurring loss. I am surprised that Nepalese government is asking Nepal Oil Corporation to continue subsidy in oil price but is not helping it with money. So, Nepal Oil Corporation is finding it difficult to get oil from
AFP reported:
Landlocked
Nepal has no oil reserves and relies on giant southern neighbourto truck in petrol, gas and other fuel. But supplies have been tightened after the impoverished Himalayan country failed to pay its bills. India "Over the past few weeks, the Indian Oil Corporation has cut the supplies by 40 to 60 percent to us as we have not been able to pay overdue bills," said Iccha Bikram Shah, a spokesman at the state-run Nepal Oil Corporation.
"The stock we have now would last for just two to three days more," he told AFP.
It seems that the only thing that Nepalese government can do is to increase the price of oil in the domestic oil. Well, that won’t be popular at all. So, Nepalese government has to find a middle ground to solve this problem.
according to the geological mesurement no oil reserve would not have in Nepal. so they need to import this thing from other coutry.
anyway, if the prize comes to high it will fall a big effect in their development.
Posted by: animesh | September 14, 2007 2:56 PM | Permalink to Comment