Fuel stations engaging in malpractices

KATHMANDU:


More than 23 per cent of fuel stations based in Kathmandu valley and six other districts were found to be ripping off consumers on the quantity of petroleum products than they paid for, in the fiscal year 2013-14.

According to Central Regional Office of Nepal Bureau of Standards and Meteorology (CRO-NBSM), it inspected approximately 130 petrol pumps located in eight districts of Bagmati zone and Dolakha district of Janakpur zone in the last fiscal, and found 30 of such stations were supplying 100ml to 200ml less for every litre of petroleum products sold. The office had conducted 574 rounds of investigation during the period.

The law currently allows deficit of up to 15 ml on sales of every five litres of fuel, and up to 0.25 per cent if the quantity is above five litres.

“Most of the flaws found during the inspection were related to supply of less than the standard volume,” informed Yogendra Poudel, chief of CRO-NBSM. “We have been charging them fines based on the nature of their misconducts.”

According to the survey, majority of pumps found engaging in misconduct were slapped with fines between Rs 2,000 to Rs 4,000 by CRO-NBSM. Poudel said that inspection programmes of the regional office have been focusing more on to the petrol pumps from last fiscal year due to reports of high irregularities in the sector.

However, the inspection results showed that the number of such flaws had decreased significantly in the second half of the year compared to the first half. During mid-July to mid-January of fiscal 2013-14, 24 petroleum suppliers, including two distributors of LPG gas were found supplying less amount of oil and gas whereas the number decreased to 11 between mid-January to mid-July this year.

Of all the inspected fuel stations, Bhaktapur Fuel Centre and Araniko Oil Centre were found to be repeatedly engaging in tampering with the fuel quantity.

Nepal Oil Corporation (NOC) had made it compulsory for new petrol pumps to set up digital dispenser to ensure consumers are getting the amount of oil that they pay for. However, the problems of irregularities still exist, said Poudel.

According to NOC, adulteration, unlike the problems of supplying less volume, has decreased to almost zero cases. “As the price of kerosene and diesel are set at the same rate, dealers would not take risk mixing them,” said Shree Chandra Shrestha, undersecretary at Quality Control and Inspection Department of NOC.

However, an inspection team by the corporation about a month ago had found Kedarsewor Oil of Dhading supplying substandard oil. NOC charged the firm with Rs 100, 000 and suspended it for one month. NOC regularly carries out inspections primarily related to the quality of petroleum products being supplied at the fuel stations.

Nepal Bureau of Standards and Meteorology (NBSM), which is also supposed to inspect and examine the quality of petroleum products, has not been able to do so as it lack necessary technology. “Generally, we cannot argue that problem of adulteration is not prevalent in Nepal. But we have not been able to do much about it because we lack updated testing procedures,” said Biswo Babu Pudasaini, director general of NBSM. Pudasaini said the bureau is trying to establish updated methods to check the quality and standards of petroleum supplies.

Report highlights

• 574 inspections carried out on around 130 petrol pumps located in eight districts of Bagmati zone and Dolakha district of Janakpur zone last fiscal

• 30 stations found supplying 100ml to 200ml less for every litre sold

• Pumps found engaging in irregularities fined Rs 2,000 to Rs 4,000

Source: THT