SANGAM PRASAIN
KATHMANDU, FEB 04 -
Demand for petrol and diesel in the Kathmandu Valley, of late, has jumped up considerably. Increased load-shedding hours, fuel hoarding and the Nepal Oil Corporation (NOC)’s inability to supply even half of the Capital’s demand are some of the reasons behind the latest rise in gasoline demand.
According to NOC and petroleum dealers, demand for petrol in Kathmandu surged to above 400 kiloliters (KL) per day from earlier 250 KL and diesel to over 500 KL per day from 350 KL.
Nepal Petroleum Dealers’ Association (NPDA) on Thursday recorded a sale of 350 KL of petrol and 500 KL of diesel. “Sales record shows that demand has increased dramatically,” said Saroj Pandey, president of NPDA, adding that gasoline shortage might prolong if NOC fails to import adequate amount.
The ongoing shortage has compelled NOC to resume its Thankot depot services during public holiday too. “We are opening Thankot depot on Friday to ensure smooth supply,” said Mukunda Dhungel, spokesperson for NOC. Dhungel said supply is improving, but not easing.
However, NPDA said NOC does not have enough stock in its depot. Thankot depot fulfils Kathmandu Valley’s demand for four days. Normally, diesel demand increases with increase in load-shedding hours, as a huge number of businesses and industrial firms rely on diesel-run generators during outage hours. However, rise in petrol demand is artificial, said Dhungel. “It is due to hoarding,” he said.
Another factor responsible for the latest gasoline shortage is rise in fuel prices in international market. This has compelled NOC to incur Rs 970 million losses every month, said an NOC official.
The finance ministry has approved a loan worth Rs 1.30 billion to NOC to ensure that NOC does not hike fuel prices for at least two months. The amount is yet to be released, though.
The Indian Oil Corporation (IOC) is providing petroleum products to Nepal on credit. Earlier, IOC had stopped credit facilities in the wake of huge outstanding dues and NOC’s inability to make timely payment, the official said.
“The reason behind all these problems is the government’s reluctance to adopt a scientific price revision system in line with international market,” added Pandey.
On Dec. 6, the oil monopoly had hiked major petroleum products’ prices. The NOC had again planned to hike fuel prices; however, wide criticism from consumer rights activists and political parties, among others, prompted the government to stop NOC’s fuel price hike plan.
According to a source, IOC is planning to curtail petroleum export to Nepal significantly, as India itself has been coping with fuel shortage.
