Govt finally authorizes NOC to procure petro products from other suppliers

Another source at the Ministry of Commerce and Supplies (MoCS) confirmed the decision. Officials say the government decided to end IOC's monopoly in Nepal's oil market after it concluded that IOC has violated bilateral agreement for supply of petroleum products and disrupted supply of the essential commodity. IOC didn't improve supply of petroleum products despite direction to do so by Indian authorities. The cabinet meeting held on Thursday had also held discussion on the proposal to end IOC's monopoly in Nepal. Though the decision was take on Thursday itself, the official authorization was issued on Tuesday only, the source at OPMCM told Republica. It has been learnt that OPMCM was in 'wait and watch' mode until Tuesday, expecting supply of petroleum products to improve. Nepali envoy to India also held talks with Indian Home Minister Rajnath Singh and officials of Minister for External Affairs to resume normal supplies through border points. NOC, on Monday, wrote a letter to IOC, seeking Rs 870 million in compensation for the loss caused by IOC's failure to supply petroleum products to it. IOC has been saying that it is not in a position to supply fuel to Nepal, citing security reasons. Supply of petroleum products has been affected for the past 12 days after India tightened its border points. Though the government has authorized NOC to procure petroleum products from other suppliers, it is not possible to bring petroleum products from other supplies from land route immediately. Though Nepal enjoys access to nearest Indian port, it cannot bring supplies from land route as India has tightened its border points. Other major trade routes with China, which were damaged by the earthquake, are being repaired. "The only available option right now is to bring petroleum through aerial route," an NOC official said, adding that they were making preparations to import petroleum products from other countries. Gopal Khadka, managing director of NOC, confirmed that the government has directed the state-owned oil monopoly to search alternative to address shortage of petroleum products. "Two local firms have showed interest to supply petroleum products. We will also invite proposals from China and other countries," said Khadka.