NOC customers ‘being fleeced out of Rs 5.4b annually’
KATHMANDU, MAY 13 -
Rampant irregularities and lack of professional management at Nepal Oil Corporation (NOC) have put an extra cost burden on consumers, said consumer rights activists and Pro Public, an organization dedicated to the cause of public interest, on Thursday.
The report of the High-Level Petroleum Sector Reform Taskforce submitted to the government recently says that consumers are paying an additional Rs 5.11 per litre of petrol which means they are getting only 9.5 litres even though they are paying for 10 litres.
Similarly, consumers are being made to pay an extra Rs 3.61 per litre of diesel, Rs 3.61 per litre of kerosene and Rs 69.74 per cylinder of liquefied petroleum gas (LPG). This means the public is being fleeced out of Rs 5.4 billion annually. But the money neither goes to NOC nor the government.
“Petroleum dealers say they pass the money to NOC depots, the Nepal Bureau of Standards and Metrology, senior management of NOC and political parties,” said consumer rights activist Jyoti Baniya. He added that this fact has been revealed by the high-level taskforce and that the dealers had admitted to it.
In addition, massive irregularities have been found in transportation of fuel and freight charges. Each tanker carrying 20,000 litres of fuel from Amlekhgunj to Kathmandu arrives in the capital with 200 litres having disappeared into thin air due to shrinkage. The internationally accepted shrinkage is 40-50 litres per tanker.
On top of that, the cost of transportation is two-fold the usual rate. “The normal transportation charge has been fixed at Rs 15,000 for the Raxaul-Thankot route, however, tankers are charging Rs 32,000,” Baniya said.
In order to address fuel transportation problems, the taskforce has emphasized starting construction of the proposed Raxaul-Amlekhgunj oil pipeline immediately. The proposal to build Nepal-India oil pipelines has been gathering dust for the last 16 years. Consumers are also being forced to pay extra for NOC’s bloated administrative expenses, according to the report. NOC has been charging 50 paisa on each litre of fuel when it is allowed to collect only 35 paisa.
“It may be a small amount, but considering that NOC imports Rs 80 billion worth of petroleum products annually, it adds up to a huge sum of money,” said Kedar Khadka of Pro Public. “There is a dire need for structural and operational level reforms in NOC,” Khadka added.
Activists doubt that the latest report by the high-level committee will be implemented as five earlier reports submitted by different expert panels have been dumped.
“The petroleum issue has always been a political issue, and we doubt that the current report will be implemented,” said Dhurbesh Chandra Regmi of South Asia Watch on Trade, Economics and Environment.
Source: Kantipur
Rampant irregularities and lack of professional management at Nepal Oil Corporation (NOC) have put an extra cost burden on consumers, said consumer rights activists and Pro Public, an organization dedicated to the cause of public interest, on Thursday.
The report of the High-Level Petroleum Sector Reform Taskforce submitted to the government recently says that consumers are paying an additional Rs 5.11 per litre of petrol which means they are getting only 9.5 litres even though they are paying for 10 litres.
Similarly, consumers are being made to pay an extra Rs 3.61 per litre of diesel, Rs 3.61 per litre of kerosene and Rs 69.74 per cylinder of liquefied petroleum gas (LPG). This means the public is being fleeced out of Rs 5.4 billion annually. But the money neither goes to NOC nor the government.
“Petroleum dealers say they pass the money to NOC depots, the Nepal Bureau of Standards and Metrology, senior management of NOC and political parties,” said consumer rights activist Jyoti Baniya. He added that this fact has been revealed by the high-level taskforce and that the dealers had admitted to it.
In addition, massive irregularities have been found in transportation of fuel and freight charges. Each tanker carrying 20,000 litres of fuel from Amlekhgunj to Kathmandu arrives in the capital with 200 litres having disappeared into thin air due to shrinkage. The internationally accepted shrinkage is 40-50 litres per tanker.
On top of that, the cost of transportation is two-fold the usual rate. “The normal transportation charge has been fixed at Rs 15,000 for the Raxaul-Thankot route, however, tankers are charging Rs 32,000,” Baniya said.
In order to address fuel transportation problems, the taskforce has emphasized starting construction of the proposed Raxaul-Amlekhgunj oil pipeline immediately. The proposal to build Nepal-India oil pipelines has been gathering dust for the last 16 years. Consumers are also being forced to pay extra for NOC’s bloated administrative expenses, according to the report. NOC has been charging 50 paisa on each litre of fuel when it is allowed to collect only 35 paisa.
“It may be a small amount, but considering that NOC imports Rs 80 billion worth of petroleum products annually, it adds up to a huge sum of money,” said Kedar Khadka of Pro Public. “There is a dire need for structural and operational level reforms in NOC,” Khadka added.
Activists doubt that the latest report by the high-level committee will be implemented as five earlier reports submitted by different expert panels have been dumped.
“The petroleum issue has always been a political issue, and we doubt that the current report will be implemented,” said Dhurbesh Chandra Regmi of South Asia Watch on Trade, Economics and Environment.
Source: Kantipur
