Petroleum scarcity hits Valley

The petrol pumps in the Valley are once again running dry. The irritant is not hard to seek. It is the ubiquitous constraints in supply as the sole petroleum products supplier Nepal Oil Corporation (NOC) has been unable to supply enough due to diminishing stock.
The state-run sole petroleum supplier has said that its sole supplier Indian Oil Corporation (IOC) has reduced the sdupply as NOC could not pay its due.
However, some of the petroleum dealers are claiming that its NOC's old trick to hike the prices of petroleum products.
"The international price has come down by half to $70 per barrel currently from last year's $140 and NOC has hiked the prices of petroleum products twice in 2010, once in February and again in March," he said adding that the deep-rooted corruption in the state-oil monopoly is responsible for the accumulative losses.
In March, it has hiked petrol, diesel and kerosene prices. Petrol was hiked to Rs 80 per litre -- dearer by Rs 2.50 -- and diesel and kerosene prices were hiked to Rs 61 per litre -- Rs 2 dearer -- in Kathmandu Valley. It has not changed the price of cooking gas, that according to the corporation, is making loss. LPG -- popularly known as cooking gas -- costs Rs 1,250 per cylinder.
On every 1st and 15th of the English calender month, NOC receives the new rate of diesel, kerosene and petrol from its supplier IOC. However, the rate of cooking gas is revised -- according to the international market price -- on the first of every English month.
NOC said, its sole supplier IOC cut the supply from this time stating that it could not pay the dues.
The NOC has asked Rs 1 billion with the finance ministry that rejected the idea saying the government cannot give money. "The NOC asked us to either let it hike price or lend Rs 1 billion," the source at the ministry said adding that the ministry rejected both the option.