Nepal Oil says it is bankrupt, further price rises foreseen

Situation is so bleak that it is back to the bad old days when the loss-making, cash-strapped public enterprise used to ask the government for handouts to import fuel.

Nepal Oil Corporation has declared itself bankrupt despite having hiked fuel prices to near record levels. Insiders say the state-owned oil monopoly's announcement of empty coffers may be a prelude to further price rises.