Federation claims cooking gas shortage‚ oil corporation refutes
KATHMANDU:
The Gas Dealers Federation projected that there will be shortage in gas supply during the festive season but Nepal Oil Corporation rules out the scarcity. “The federation has its vested interest,” an official at the corporation claimed, blaming the federation for creating artificial shortage.
“The federation has been embarrassed after the government started to crackdown the illicit gas business,” the source said, claiming that the federation is trying to divert the issue.
The corporation has imported some 6,500,000 cylinders of cooking gas during the first half of the current month, he said, adding that there is a clear indication of hoarding by traders to sell it in black-market at the time of Dashain. “By creating rumours of shortage, the federation wants to hoard cooking gas to sell it at higher price during festive season.”
Ministry of Commerce and Supplies also said that the ministry is committed to supply cooking gas according to market demand during the festive season. “The ministry has requested Indian Oil Corporation not to reduce cooking gas supply,” the ministry’s spokesperson Ganesh Prasad Dhakal said, adding that Nepal Oil Corporation has projected import of some 18,000 metric tonnes of cooking gas in September against a normal consumption of around 15,000 metric tonnes to 16,000 metric tonnes.
Meanwhile, the federation has submitted a 17-point memo to the minister for Commerce and Supplies demanding to increase import of cooking gas.
The government should take action against the officials at NOC for not implementing the system of distributing gas quota according to number of gas cylinder, federation’s president Gyaneshwar Aryal said, urging the minister to scrap licence of bottling plants running out of fulfilling minimum requirement.
State oil monopoly’s loss goes up
NOC will incur Rs 705.8 million loss every month from nowonwards, according to the price list sent by Indian Oil Corporation on September 16. The NOC was incurring Rs 506 million loss every month according to September 1 price list. According to the revised price list, the NOC will incur loss of Rs 1.66 on a litre of petrol, Rs 9.69 on a litre of diesel and Rs 297.97 on a cylinder of cooking gas. However, the corporation will profit Rs 1.50 on a litre of kerosene and Rs 21.90 on a litre of Aviation Turbine Fuel. Meanwhile, the state oil monopoly has also sought Rs 1.40 billion loan from Finance Ministry to keep smooth supply during the festive season. The corporation had borrowed Rs 400 million loan from different commercial banks to pay to Indian Oil Corporation last week.
Source: THT
The Gas Dealers Federation projected that there will be shortage in gas supply during the festive season but Nepal Oil Corporation rules out the scarcity. “The federation has its vested interest,” an official at the corporation claimed, blaming the federation for creating artificial shortage.
“The federation has been embarrassed after the government started to crackdown the illicit gas business,” the source said, claiming that the federation is trying to divert the issue.
The corporation has imported some 6,500,000 cylinders of cooking gas during the first half of the current month, he said, adding that there is a clear indication of hoarding by traders to sell it in black-market at the time of Dashain. “By creating rumours of shortage, the federation wants to hoard cooking gas to sell it at higher price during festive season.”
Ministry of Commerce and Supplies also said that the ministry is committed to supply cooking gas according to market demand during the festive season. “The ministry has requested Indian Oil Corporation not to reduce cooking gas supply,” the ministry’s spokesperson Ganesh Prasad Dhakal said, adding that Nepal Oil Corporation has projected import of some 18,000 metric tonnes of cooking gas in September against a normal consumption of around 15,000 metric tonnes to 16,000 metric tonnes.
Meanwhile, the federation has submitted a 17-point memo to the minister for Commerce and Supplies demanding to increase import of cooking gas.
The government should take action against the officials at NOC for not implementing the system of distributing gas quota according to number of gas cylinder, federation’s president Gyaneshwar Aryal said, urging the minister to scrap licence of bottling plants running out of fulfilling minimum requirement.
State oil monopoly’s loss goes up
NOC will incur Rs 705.8 million loss every month from nowonwards, according to the price list sent by Indian Oil Corporation on September 16. The NOC was incurring Rs 506 million loss every month according to September 1 price list. According to the revised price list, the NOC will incur loss of Rs 1.66 on a litre of petrol, Rs 9.69 on a litre of diesel and Rs 297.97 on a cylinder of cooking gas. However, the corporation will profit Rs 1.50 on a litre of kerosene and Rs 21.90 on a litre of Aviation Turbine Fuel. Meanwhile, the state oil monopoly has also sought Rs 1.40 billion loan from Finance Ministry to keep smooth supply during the festive season. The corporation had borrowed Rs 400 million loan from different commercial banks to pay to Indian Oil Corporation last week.
Source: THT
