NOC reform plan fails to kick off

Mon, May 30, 2011 12:00 AM on Others, Others,
KATHMANDU, May 30:
Neither Nepal Oil Corporation nor Ministry of Commerce and Supplies seem interested in reforming state oil monopoly for the smooth supply of petroleum products.

A high level committee formed by the government to study and recommend NOC reforms had submitted its report to the Prime Minister Jhala Nath Khanal on May 6. The report has charted immediate, short-term, medium term and long term reforms programmes in the petroleum business.

Under the immediate action plan, the report has recommended ti control and monitor leakages, inspect petroleum pumps and bottling plants, and discourage import from Barauni depot of Indian Oil Corporation. However, not a single recommendation has been followed. The report has stated formulation of guidelines to control and monitor the leakages of petroleum products unless a new act is promulgated within a month. However, its almost a week left for a month but the ministry has not initiated the task so far. “It is hard to formulate separate guideline within a week,” a source at the Nepal Oil Corporation said.

The report also recommended Nepal Oil Corporation, ministry and local administration to inspect petrol pumps and bottling plants of cooking gas on a monthly basis and publisise the inspection report regularly.

However, the state oil monopoly thinks that market monitoring is not ist duty. “Department of Standard and Meteorology is responsible for carrying out monitoring,” said NOC managing director Digambar Jha. according to the report, in absence of monitoring, the consumers are being ‘cheated’ in cooking gas and petrol both as they are not getting for what they pay.

The report has suggested to set up a permanent body to ensure the complete weight of cooking gas. “Consumers should get chance of weighing while buying a cooking gas cylinder,” the report said. But according to Jha, a consent from Department of Standard and Meteorology is a must to execute the provision.

The report has further recommends the government to discourage import of petroleum products from Barauni depot instead of Raxaul depot of Indian Oil Corporation. But, according to Jha, it is impossible to reduce the import from Barauni. “Indian Oil Corporation is not in the condition to supply petroleum products according to Nepali market’s demand from its Raxaul depot,” Jha said.

The government on March 23 had formed a High Level Committee led by Constitutient Assembly member Bhim Acharya to a submit report on Nepal Oil Corporation and it reform for the smooth petroleum products supply.

The government, after cabinet’s approval, has forwarded the report to Ministry of Commerce and Supplies for its implementation at the earliest. Similarly, it has also formed a committee led by chief secretary Madhav Prasad Ghimire to regularly monitor progress.

Source: THT