 |
Kathmandu Friday July 07, 2000 Ahsad 23, 2057.
|
Liberlized Indian petroleum policy to
affect Nepal
By a Post Reporter
KATHMANDU, July 6 - Unlike the previous
trend, Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) recently reached a new
agreement for import of petroleum products just for one year in place of regular five
years. The agreement was reached on June 29 after the agreement between the two parties
made on June 27, 1995, expired on June 26, 2000.
"A lot of changes in the policies of
Petroleum sector in India after June 1995 has prompted us to reach a one year agreement
this time," said Madan Raj Sharma, Acting Managing Director of NOC.
India is planning to release the Administered
Pricing Mechanism (APM) in April 2000, thereby lifting all subsidies on petroleum products
in India.
NOC thus has to think in a broader aspect of
all possible ways to obtain petroleum products at cheaper rates from reliable sources and
ensure its smooth supply.
"The situation in the petroleum sector
in India would be different after 2002. We need time to foresee its probable implications
on Nepal and so the agreement was renewed only for a year," said Sharma.
According to the recent agreement, a
three-member team would be formed, each from IOC and NOC, and do the necessary homework as
a cushion for policy change within this year. A new five-year agreement would again be
reached next year after the completion of the preparatory work.
NOC imports diesel and kerosene from abroad
and exchanges the excess of it for aviation fuel, petrol and other petroleum products with
IOC. However, NOC is considering to import crude oil from 2002, which it intends to sell
or exchange for purified products from IOC.
Such a decision is under consideration
keeping in view the increase in Indian refining capacity and the requests of
IOC. "The final decision to import crude oil needs more thinking," said Sharma.
He informed that the decision to import crude
oil would be significantly guided by the type of agreement IOC intends to reach.
Presently, Nepal has a capacity to store 60
thousand metric tons of oil, which would be enough to meet the petroleum needs for about
35 days.
Other Stories
|
