NOC demands Rs 240m from govt to boost supply
KATHMANDU, JAN 20 -
The Nepal Oil Corporation (NOC) has requested the government to provide Rs 240 million to increase petroleum supply in line with the higher winter demand.
According to NOC, consumption of diesel and liquefied petroleum gas (LPG) jumps dramatically during winter as big projects, industries and hotels, among others, use excess fuel to produce energy amid prolonged load-shedding hours. “As NOC will not be able to meet the winter petroleum demand, we have asked the government for the money,” said Shiva Prasad Pudashaini, spokesperson of the NOC. “The government is positive to our request.”
Meanwhile, NOC has said fuel supply in the market will normalise by Tuesday. A number of refuelling stations have dried up due to inadequate fuel supply since last week.
NOC said there was slight shortage of fuel in the market last week due to automation work at Raxaul depot of the Indian Oil Corporation (IOC), which forced the latter to cut daily petroleum consignment to 1,500kl from 2,500kl. The depot fulfils 70 percent of Nepal’s petroleum supply .
As an alternative, NOC had been importing fuel from Barauni refinery. However, NOC officials said due to some problems at the refinery, fuel consignment was affected for more than two days, creating shortage. NOC had even used around 2,000kl fuel from its stock when the import was interrupted.
NOC, however, said the supply from Barauni has resumed. “On Thursday and Friday, the refinery dispatched a fair amount of petroleum,” Pudashaini said. “Tankers loaded with fuel are on the way to Nepal. We expect normal supply in the market by Tuesday.”
Fuel scarcity is likely to stay on Sunday and Monday as NOC did not supply fuel on Saturday due to public holiday. Similarly, due to public holiday in India, there won’t be any consignment on Sunday.
NOC, however, made it clear that the fuel short supply was not due to cash shortage or NOC’s inability to clear IOC dues. At present, NOC owes around Rs 28 billion in loans to the government and different banks and financial institutions.
Lilendra Pradhan, president of the Nepal Petroleum Dealers’ National Association, said the there has been a severe scarcity of diesel for the last week, but petrol supply has been normal. “We have been receiving around 350kl of diesel daily, but the current market demand is at 700kl a day,” Pradhan said.
Source: The Kathmandu Post
