Mahato said a decision to hike the prices has become necessary to address the loss the state-owned Nepal Oil Corporation (NOC) is incurring. The NOC has incurred a total loss of Rs 200 million in the last three months.
He said that the government is preparing to provide a loan of Rs 500 million to the NOC as Indian Oil Corporation is likely to curtail oil supply to Nepal over the dues NOC owes to IOC.
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