Cash-strapped NOC cuts fuel imports by 25pc

KATHMANDU, APR 16 -

Nepal Oil Corporation (NOC) has said petroleum imports have been cut by 25 percent due to inadequate funds. It said supply would normalise within a week after the government releases Rs 5 billion.

“We asked Rs 5 billion to ensure smooth supply of fuel,” said Sagar Satyal, officiating managing director of NOC. He said the parliamentary committee formed to look after petroleum affairs is positive about releasing the fund.

Satyal said NOC of Rs 5 billion to be paid to Indian Oil Corporation (IOC), only Rs 2.96 billion was paid to IOC on April 9.

Fuel shortages have forced motorists to wait for hours in queues at gas stations to refuel their vehicles.

NOC said it supplied 516kl diesel and 300kl petrol to the market on Tuesday. The daily demand for diesel stands at more than 600kl, while more than 500kl of petrol is consumed every day in the Kathmandu valley. NOC said it could not supply fuel on Monday due to public holiday.

According to the NOC, its stock has come down to 27,000 kl as of Tuesday. On the day, 1900 kl entered Nepal from Raxaul compared to daily import of 2,400 kl normally.

Satyal, however, said the trend of hoarding petroleum products during shortages has further worsened the situation.

Source: The Kathmandu Post