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VOL. 27, NO. 36, May 23, 2008 (Jestha 10 2065 B.S.)
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Grinding To A Halt
As the state-owned Nepal Oil Corporation (NOC) expresses its inability
to ensure smooth supply, the government promises yet another temporary
measure
By SANJAYA DHAKAL
"I have been unable to get petrol for weeks. As I do not have time to
stay in queue for hours, I am forced to buy a liter of petrol for Rs
200 from black market," said Rajesh Dhungana, who depends on his
motorcycle to travel to and fro his office everyday.
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Motorcycle in a long queue: Never- ending problem |
The plight of Dhungana is shared by many people. Due to persistent
shortage of fuel, the simple issue of buying fuel to run vehicles has
emerged as a singular challenge.
"I have to wait for hours in queue, sometime the whole night.
Otherwise, without fuel I cannot drive my taxi to earn bread for my
family. When you have to stay in queue for hours to get few liters of
petrol, you feel enraged about many things – for example, there is no
toilet around here. The government must solve this problem
immediately," said one enraged driver who was in a queue in Maitidevi.
Amid the deepening crisis of fuel shortage, the state-owned fuel
supply monopoly made a rare admission. The Nepal Oil Corporation
(NOC), on Thursday (May 22) said that the selling and distribution of
petroleum products will come to a halt if the government fails to take
immediate measures to import fuel.
The state-owned NOC drew the attention of the government to the
impending problem stating that it will run out of the existing
stockpile within a week.
Addressing a press conference, NOC Executive Director Digambhar Jha
informed that petrol, diesel and kerosene will be available for only
six more days and aircraft fuel will last for only eight days.
Jha also informed that the import of fuel was reduced to 40 percent in
comparison to the previous month. Advising the government to hand over
the import of fuel to the private sector, Jha said that depending on
foreign grants alone can never guarantee fuel supply.
Just a few weeks back, NOC had asked for Rs 2. 07 billion loan from
the government citing huge losses and failure to maintain a smooth
supply of petroleum products in the country.
Subsequently, the government decided to make available Rs 800 million
to the NOC.
The crisis has worsened after the Indian Oil Corporation, the sole
supplier of petroleum products to Nepal, cut the fuel supply after the
NOC failed to clear its dues to the IOC.
The fuel shortage in the country has returned with a vengeance after
the Constituent Assembly election as queues of customers in front of
petrol stations has started to become a normal sight in Kathmandu
valley and outside.
Owing to its inability to pay off past dues and rising monthly losses
standing at Rs 1.5 billion, Nepal Oil Corporation, the state-owned oil
monopoly in the country, has been unable to secure enough imports from
its Indian supplier, Indian Oil Corporation, hence deepening the
shortage.
According to Jha, the current price of petroleum products correspond
to US$ 83 per barrel of crude oil in the international market. This
price has now increased to around US$ 130 per barrel.
Adding to its woes, the Nepal Petroleum Dealers Association (NPDA) has
also threatened to launch strike if there is no smooth supply soon.
Earlier the NPDA had warned to launch such strike from May 28.
However, due to the Constituent Assembly meeting, they have decided to
wait few more weeks before imposing the strike. The association has
claimed that Nepal Oil Corporation (NOC) has cut down supplies by 50
percent.
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