NOC on verge of hitting dead stock

KATHMANDU,DEC 27: 

Nepal Oil Corporation, which has slashed fuel import by 50 per cent, is on the verge of running out of stock. 

“We have the stock of only 14,000 kl of petroleum products throughout the country,” said Acting Managing Director of NOC Suresh Kumar Agrawal, adding that the current stock is barely enough to meet the need for a day. 

NOC's largest depot at Amlekhgunj and the second largest at Thankot are about to hit the ‘dead stock’ — the last few hundred kl of fuel that cannot be pumped out for distribution and use, according to Agrawal. 

Most of the fuel stations have already downed their shutters, and those operating today witnessed serpentine queue of vehicles. 

Fuel crisis was palpable early this month after the state oil monopoly reduced its import by 30 per cent in the wake of massive loss it was facing. Since then it has failed to purchase enough fuel to make up for the shortfall. NOC had faced similar fuel crisis in April as well. It owes nearly Rs 1 billion to Indian Oil Corporation. 

Fuel shortage has been a perennial problem in the country, but there is no solution in sight. Though the government on December 23 had decided to provide Rs 1.5 billion to NOC, 'it will take a few more days before the Ministry of Finance releases the money', said Joint Secretary at the Ministry of Commerce and Supplies Deepak Subedi, adding that MoCS is formulating a loan proposal and that it could receive the loan after it is approved by MoF. 

According to Agrawal, increasing the fuel prices is the only long-term solution.

The state oil monopoly today supplied 319 kl of petrol, 363 kl of diesel and 60 kl of kerosene in Kathmandu.

Source: THT