NOC proposes reduced import-facilitator cost to IOC

KATHMANDU, MAR 20: 

Nepal Oil Corporation (NOC) has proposed Indian Oil Corporation (IOC) to reduce import-facilitator cost in cooking gas in the new agreement, which is going to be inked in April.

“The IOC is charging Rs 3,000 in a metric tonne of cooking gas as import-facilitator cost,” said acting managing director at Nepal Oil Corporation Suresh Kumar Agrawal, briefing a meeting organised by National Planning Commission (NPC) to discuss the development on IOC-OC fuel supply agreement renewal.

Similarly, the corporation has also proposed sole supplier of the petroleum products to NOC to remove out of zone movement cost, which the NOC is paying while importing from Siliguri depot of Indian Oil Corporation.

“NOC pays Rs 100 to Rs 150, as Out of zone movement cost, an official at the corporation said. “Similarly, there is some disagreements between importer and IOC regarding transportation cost charged by IOC.”

IOC has been charging the transportation cost of railway services in all products even though it is using pipeline to supply them, the NOC officials said, adding that IOC, however, refused to recalculate and reduce the present transportation cost during the bilateral talk last month. The implementation of Export Parity Price and introduction of flat rate in marketing margin are yet to be finalised.

Similarly, IOC has proposed to remove Price Adjustment Factor but, it has proposed to increase marketing margin to five per cent from 2.5 per cent. “It has proposed to provide Rs 450 concession in every kiloliter (kl) of petrol, diesel and kerosene and per metric tonne of cooking gas,” the officials added.

In the meeting with the National Planning Commission today, the NOC officials said that IOC has agreed to construct pipeline from Raxaul depot of IOC to Amlekhgunj depot of NOC. “NOC has proposed different modalities to construct pipeline and IOC has agreed to initiate pipeline construction project,” joint secretary at the Finance Ministry Khum Raj Punjali quoted NOC officials as saying.

Source: THT