SANGAM

Valley to suffer fuel woes again

SANGAM PRASAIN
KATHMANDU, JUN 29 - Long queues of motorists formed outside gasoline stations in the capital on Monday as supplies have run short of demand.

Nepal Oil Corporation (NOC) said the shortage was caused by India Oil Corporation's (IOC) move to cut deliveries by 50-60 percent as NOC had fallen behind in its payments.
NOC's import bills have crossed Rs. 800 million, said NOC spokesperson Mukunda Dhungel. IOC had reduced fuel shipments from June 16. 

As a result, NOC's diesel and petrol stocks across the country have come down to 35,000 kl from its normal amount of 42,000 kl, Dhungel said.
IOC has been exporting only 1,000 kl of petroleum products per day compared to the daily requirement of 2,300 kl.

Saroj Pandey, president of the Nepal Petroleum Dealers Association, said that the valley's petrol pumps had not been replenished for two days. "Petrol pumps did not receive fuel on Saturday and Sunday; as a result, pressure mounted on Monday," he added.
Bhuwaneshwor Rajbhandari, chief of the NOC's Thankot depot, said that demand had increased as the supply went down. He added that the shortage occurred due to road disturbances on Saturday and India's
public holiday on Sunday. India does not deliver petroleum products on public holidays.

"Similarly, two consecutive public holidays have resulted in a shortage in the Kathmandu Valley," he said. 
According to him, petrol stocks in the valley have come down to 1,300 kl from the  usual 1,800 kl, diesel down to 3,200 kl from 8,400 kl and kerosene down to 3,600 kl from 4,200 kl. The total capacity of the Thankot depot is 14,400 kl.

NOC said that that it had started distributing the petroleum products in storage to avert a shortage.
Dhungel said that NOC had asked the government for Rs. 1 billion as it had ruled out increasing fuel prices.
The government has asked NOC to try to borrow money from banks, but NOC is not in a position to take loans as it already owes Rs 10.74 billion.

"NOC has incurred losses amounting to Rs. 1.30 billion on LPG and diesel as of May
31," Dhungel said. He added that NOC was losing Rs. 177 per cylinder of LPG.