NOC suggests to implement quota on fuel purchase

The bankrupt state oil monopoly has again recommended the government to implement the already failed two-day weekly off and quota in fuel purchase.

Citing shortage of funds to pay to the Indian oil Corporation (IOC) amid soaring financial loss, Nepal Oil Corporation (NOC) today wrote a formal letter to the Prime Minister, Industry and Commerce Minister and Home Minister, and suggested to re-implement the two-day weekly holiday, and apply quota on fuel purchase.

Among the 10-point suggestions, the NOC wrote the government to curb the purchase of maximum 5 litre of petrol to the two-wheelers, and 20 litres to the four-wheelers, apart from enforcing an odd-even system on vehicle use. Likewise, it has asked the government to ban the import of the fuel-operated vehicles, restrict the use of vehicles on holidays, and promote the walking culture for short distance, in order to check the rising fuel import. The NOC has also suggested the government to encourage the use of electric vehicles and set up charging stations along the national highways, and various places to make people easy to charge their electric vehicles.

NOC claimed that its outstanding dues to the IOC, it sole petroleum products’ supplier, has reached Rs 22 billion, which could cross Rs 30 billion from July 8. “While the monthly loss of NOC now stands at Rs 10 billion, the cumulative loss will reach Rs 55 billion by the end of this fiscal year,” the NOC letter reads.

The ongoing war between Russia and Ukraine has disturbed the smooth supply of fuel pushing its price to historic high in the international market. According to NOC, its loss amount is increasing as it is unable to adjust the fuel price in the line of the prices in the international market.

Nepal imports more than 200 billion worth petroleum products annually, from India. As the country’s largest import petroleum products’ bill is much larger than the total export earnings of the country, the NOC has long been pushing the government to implement a number of measures to check rising consumption of petroleum products, and also to reduce its losses.