Once again the consumers are facing petroleum crisis, thanks to the Nepal Tanker Drivers' Association (NTDA).
"Due to the tanker drivers' agitation, the tankers have not been loaded with petroleum products since Monday," said Nepal Oil Corporation (NOC) spokesperson Mukund Dhungel. While some tankers are en route to the valley new supply has virtually stopped.Dhungel said that today NOC held discussions with the Nepal Tanker Transport Association (Parsa), All Nepal Transport Labourers' Association, Nepal Transport Free Labourers' Union (Raxaul), Nepal Oil Corporation Kathmandu Tankers Route Unit and Nepal Petrol Transport Association regarding the eight-point memorandum of the tanker drivers.
The drivers want that the eight-point demand conceded by the NOC be implemented. "NOC is ready to implement the agreement that was reached between the NOC and the tanker drivers," Dhungel said adding that on Thursday they would hold talks with the agitating drivers. Minimum wage and allotment of parking area are some of the demands of the drivers. The agreement over the demands was reached last year.
NTDA has been agitating since three days, urging NOC to implement previous agreements. The strike has disrupted transportation of petroleum products in the country coming from Raxaul. "We have distributed the petroluem products that we had in the valley, but there was no new supply," Dhungel said.
NOC said a crisis of confidence between NTDA and Petroleum Transport Association (PTA) had caused the problem.
Showing posts with label Nepal Petroleum Dealers' Association. Show all posts
Showing posts with label Nepal Petroleum Dealers' Association. Show all posts
Wednesday, June 10, 2009
Saturday, January 10, 2009
NOC to set up labs to check adulteration
Nepal Oil Corporation (NOC) -- the sole distributor of petroleum products -- is planning to establish well-equipped laboratories soon in Birgunj and at its head office in Kathmandu to check the quality of petroleum products.
"In recent days, consumers -- especially bikers and auto-owners -- have been complaining of low-quality petroleum products that have damaged their vehicles," NOC managing director Digamber Jha said during its 39th anniversary. He added the establishment of well-equipped labs was a top priority. "NOC will set up two labs soon," Jha said.
The increasing adulteration has forced the oil monopoly to think of setting up labs. Due to prolonged power outage, the demand for petroleum products, especially diesel, has risen by 50 to 60 per cent this winter and adulterators are making hay due to the lack of quality control.
To check the adulteration, NOC recently made kerosene and diesel prices equal. "And to meet the rising demand it is planning to bring petroleum products from Barauni and Mughalsarai of India," Jha said.
NOC employees and Nepal Petroleum Dealers' Association (NPDA) alike lauded the NOC decision to make kerosene and dielel prices equal. "There was an adulteration scam of over Rs 700 million," alleged NPDA president Saroj Pandey. After kerosene and dieles prices were equalised, over the last two months the demand for kerosene dropped dramatically. The oil mafia was raking in tidy profits by mixing the earlier lower priced kerosene in diesel and passing off the mixture as diesel.
"There is around Rs 80 billion transaction of petroleum products in the country. But still there is no scientific pricing mechanism," Pandey said. "When crude price in the international market goes down, NOC should also downscale the price, and when it goes up NOC should also upscale it," he said adding that the only solution was an automatic pricing mechanism. However, there is no scientific pricing mechanism yet.
But NOC employees' union was of the view that it should not be only supply oriented. "Rather, NOC should also have its own pumps to ensure smooth and quality supply in case the private sector disrupts supply due to any reason," said NOC employees' union president Devi Neupane.
Apart from diesel, kerosene and petrol, NOC also supplies cooking gas. NOC is planning to permit the private sector to establish gas industries at the places where there is high demand. Neupane urged NOC not to get involved in gas supply as it was a losing proposition.
Around 2,500 dealers are associated with NOC and some 1,200 tankers are currently in use for supply.
"In recent days, consumers -- especially bikers and auto-owners -- have been complaining of low-quality petroleum products that have damaged their vehicles," NOC managing director Digamber Jha said during its 39th anniversary. He added the establishment of well-equipped labs was a top priority. "NOC will set up two labs soon," Jha said.
The increasing adulteration has forced the oil monopoly to think of setting up labs. Due to prolonged power outage, the demand for petroleum products, especially diesel, has risen by 50 to 60 per cent this winter and adulterators are making hay due to the lack of quality control.
To check the adulteration, NOC recently made kerosene and diesel prices equal. "And to meet the rising demand it is planning to bring petroleum products from Barauni and Mughalsarai of India," Jha said.
NOC employees and Nepal Petroleum Dealers' Association (NPDA) alike lauded the NOC decision to make kerosene and dielel prices equal. "There was an adulteration scam of over Rs 700 million," alleged NPDA president Saroj Pandey. After kerosene and dieles prices were equalised, over the last two months the demand for kerosene dropped dramatically. The oil mafia was raking in tidy profits by mixing the earlier lower priced kerosene in diesel and passing off the mixture as diesel.
"There is around Rs 80 billion transaction of petroleum products in the country. But still there is no scientific pricing mechanism," Pandey said. "When crude price in the international market goes down, NOC should also downscale the price, and when it goes up NOC should also upscale it," he said adding that the only solution was an automatic pricing mechanism. However, there is no scientific pricing mechanism yet.
But NOC employees' union was of the view that it should not be only supply oriented. "Rather, NOC should also have its own pumps to ensure smooth and quality supply in case the private sector disrupts supply due to any reason," said NOC employees' union president Devi Neupane.
Apart from diesel, kerosene and petrol, NOC also supplies cooking gas. NOC is planning to permit the private sector to establish gas industries at the places where there is high demand. Neupane urged NOC not to get involved in gas supply as it was a losing proposition.
Around 2,500 dealers are associated with NOC and some 1,200 tankers are currently in use for supply.
Wednesday, December 3, 2008
Consumer at crossroads over pricing war
In the Valley-Petrol - Diesel - Kerosene
NOC price - Rs 85.50 - Rs 60.50 - Rs 60.50
NPDA price - Rs 85.70 - Rs 60.75 - Rs 60.75
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The state oil monopoly Nepal Oil Corporation (NOC) has lived up to its promise, slashing the retail prices of petrol, diesel and kerosene, which will be applicable from this midnight.
Contrary to the global freefall of oil prices, the cuts are a paltry Rs 5 for each item. Currently, international price of crude is hovering around $50 per barrel (159 litres). It had risen to an unprecedented high of $147 per barrel about three months ago.
Ideally, the prices should have been readjusted on the same day NOC received the new price list from its sole supplier of petroleum products, Indian Oil Corporation (IOC). The delay has had a cascading effect in the Valley, which had stopped lifting petrol over the last couple of days, causing an artificial scarcity of sorts.
However, the reduction is couched in a shrewd pricing mechanism. Though in the face of it, the prices have been reduced by Rs 5, the Valley denizens will end up paying more due to Nepal Petroleum Dealers' Association (NPDA) and pollution controlling charge. The negligible alteration - Re 0.50 per litre more for petrol and diesel - in mark-up prices is attributed to 'pollution controlling charge'.
Consequently, petrol and diesel will be available for Rs 85.50 and Rs 60.50 per litre, respectively in the Valley, according to the NOC that has fixed revised price of kerosene at Rs 60.50 per litre, which is on a par with diesel. The cost of ever-scarce cooking gas (LPG) remains unchanged.
But, despite NOC's caveat, the Nepal Petroleum Dealers' Association (NPDA) is busy chalking out its own pricing mechanism.
"A consumer has to pay Rs 85.70 for per litre petrol, Rs 60.75 per litre diesel and Rs 60.75 for per litre kerosene in the Valley," according to NPDA.
Digamber Jha, managing director, NOC, strictly said that NOC fixes retail prices of petroleum products. "NOC will stop supply," he said adding that "if necessary NOC will also suspend the licence of those not following NOC's price list. But entreaties are likely to fall on deaf ears.
The price of Air Turbine Fuel (ATF) has also been reduced by $100 to $1,200 per kilolitre for international flights. Local aviation companies have to cough up Rs 95 per litre, a reduction of Rs 5. Incidentally, bowing to global cues, NOC was compelled to slash prices for the third time in as many months.
Notwithstanding the downward revision, NOC is raking in a tidy monthly profit of Rs 500 million. "But the present profit cannot make up for the cumulative loss that stands around Rs 15 billion. At this rate, NOC will be able to pay its outstanding loan to various financial institutions within next three years," said Purushottam Ojha, secretary at the ministry of commerce and supplies.
On the otherhand, NPDA authorities insisted that NOC price would adversely affect their business prospects within the Valley. They argued that the distance ensured a price difference of Rs 2 in each litre of fuel between the Valley and Hetauda. "Cumulatively, it adds up to an astounding difference of Rs 24,000 for a single tanker," they said.
A logic that may not cut ice with NOC. They, it seems, at loggerheads again and the consumers will again be at crossroads.
NOC price - Rs 85.50 - Rs 60.50 - Rs 60.50
NPDA price - Rs 85.70 - Rs 60.75 - Rs 60.75
-----------
The state oil monopoly Nepal Oil Corporation (NOC) has lived up to its promise, slashing the retail prices of petrol, diesel and kerosene, which will be applicable from this midnight.
Contrary to the global freefall of oil prices, the cuts are a paltry Rs 5 for each item. Currently, international price of crude is hovering around $50 per barrel (159 litres). It had risen to an unprecedented high of $147 per barrel about three months ago.
Ideally, the prices should have been readjusted on the same day NOC received the new price list from its sole supplier of petroleum products, Indian Oil Corporation (IOC). The delay has had a cascading effect in the Valley, which had stopped lifting petrol over the last couple of days, causing an artificial scarcity of sorts.
However, the reduction is couched in a shrewd pricing mechanism. Though in the face of it, the prices have been reduced by Rs 5, the Valley denizens will end up paying more due to Nepal Petroleum Dealers' Association (NPDA) and pollution controlling charge. The negligible alteration - Re 0.50 per litre more for petrol and diesel - in mark-up prices is attributed to 'pollution controlling charge'.
Consequently, petrol and diesel will be available for Rs 85.50 and Rs 60.50 per litre, respectively in the Valley, according to the NOC that has fixed revised price of kerosene at Rs 60.50 per litre, which is on a par with diesel. The cost of ever-scarce cooking gas (LPG) remains unchanged.
But, despite NOC's caveat, the Nepal Petroleum Dealers' Association (NPDA) is busy chalking out its own pricing mechanism.
"A consumer has to pay Rs 85.70 for per litre petrol, Rs 60.75 per litre diesel and Rs 60.75 for per litre kerosene in the Valley," according to NPDA.
Digamber Jha, managing director, NOC, strictly said that NOC fixes retail prices of petroleum products. "NOC will stop supply," he said adding that "if necessary NOC will also suspend the licence of those not following NOC's price list. But entreaties are likely to fall on deaf ears.
The price of Air Turbine Fuel (ATF) has also been reduced by $100 to $1,200 per kilolitre for international flights. Local aviation companies have to cough up Rs 95 per litre, a reduction of Rs 5. Incidentally, bowing to global cues, NOC was compelled to slash prices for the third time in as many months.
Notwithstanding the downward revision, NOC is raking in a tidy monthly profit of Rs 500 million. "But the present profit cannot make up for the cumulative loss that stands around Rs 15 billion. At this rate, NOC will be able to pay its outstanding loan to various financial institutions within next three years," said Purushottam Ojha, secretary at the ministry of commerce and supplies.
On the otherhand, NPDA authorities insisted that NOC price would adversely affect their business prospects within the Valley. They argued that the distance ensured a price difference of Rs 2 in each litre of fuel between the Valley and Hetauda. "Cumulatively, it adds up to an astounding difference of Rs 24,000 for a single tanker," they said.
A logic that may not cut ice with NOC. They, it seems, at loggerheads again and the consumers will again be at crossroads.
Friday, October 17, 2008
Oil supply for Tihar ensured, NOC in profit
The government of India today directed the Indian Oil Corporation (IOC) - the sole petroleum products’ supplier to Nepal Oil Corporation (NOC) - to supply petroleum product’s smoothly.
The Indian government during the visit of Prime Minister Puspa Kamal Dahal ‘Prachanda’ committed that it would provide a credit of upto Rs 1,500 million Indian Currency (IC) to Nepal for the next three months to ensure uninterrupted petroleum products’ supplies.
“However, we are still waiting to get the duty draw back to the tune of Rs 610 million,” NOC managing director Digamber Jha said.
That apart, NOC is waiting for financial institutions to provide it loans. “The cabinet decided on September 4 to provide NOC Rs 3 billion from various financial institutions for smooth supplies,” said Jha adding that it has, however, got only Rs 1 billion from Citizen Investment Trust (CIT) while other financial institutions were not very keen on lending. NOC also has to get Rs 840 million VAT refund that it overpaid to the Inland Revenue Department.
Meanwhile Nabindra Raj Joshi, Constituent Assembly member, who lobbied for the working capital of NOC during the acute shortage, said the Finance Ministry has asked NOC to audit its last year’s account and then reclaim the overpaid VAT.
“NOC can collect advance from all petroleum dealers,” Joshi suggested. “Since there is no loss at current price, they will happily deposit the advance.” According to the price list sent by IOC yesterday, NOC is in profit of around Rs 10 million. IOC sends price list to NOC on every second and sixteenth day of the english month.
“If NOC ensures that the profit it gets will be deposited directly to banks, any financial institution will be ready to lend NOC,” Joshi said adding that NOC could adjust price as it was in profit but Jha clarified until Tihar NOC was unable to take any decision on price adjustment.
At the current price, the NOC is earning Rs 16.50 per litre petrol and Rs 25 per litre ATF, totalling it to above Rs 10 million profit from October second week.
The Indian government during the visit of Prime Minister Puspa Kamal Dahal ‘Prachanda’ committed that it would provide a credit of upto Rs 1,500 million Indian Currency (IC) to Nepal for the next three months to ensure uninterrupted petroleum products’ supplies.
“However, we are still waiting to get the duty draw back to the tune of Rs 610 million,” NOC managing director Digamber Jha said.
That apart, NOC is waiting for financial institutions to provide it loans. “The cabinet decided on September 4 to provide NOC Rs 3 billion from various financial institutions for smooth supplies,” said Jha adding that it has, however, got only Rs 1 billion from Citizen Investment Trust (CIT) while other financial institutions were not very keen on lending. NOC also has to get Rs 840 million VAT refund that it overpaid to the Inland Revenue Department.
Meanwhile Nabindra Raj Joshi, Constituent Assembly member, who lobbied for the working capital of NOC during the acute shortage, said the Finance Ministry has asked NOC to audit its last year’s account and then reclaim the overpaid VAT.
“NOC can collect advance from all petroleum dealers,” Joshi suggested. “Since there is no loss at current price, they will happily deposit the advance.” According to the price list sent by IOC yesterday, NOC is in profit of around Rs 10 million. IOC sends price list to NOC on every second and sixteenth day of the english month.
“If NOC ensures that the profit it gets will be deposited directly to banks, any financial institution will be ready to lend NOC,” Joshi said adding that NOC could adjust price as it was in profit but Jha clarified until Tihar NOC was unable to take any decision on price adjustment.
At the current price, the NOC is earning Rs 16.50 per litre petrol and Rs 25 per litre ATF, totalling it to above Rs 10 million profit from October second week.
Friday, October 26, 2007
New retail prices
Nepal Petroleum Dealers' Association (NPDA) today organising a press meet fixed the retail prices of petrol, diesel and kerosene for various places.
The retail price of petrol per litre is Rs 73.50 for Kathmandu valley which is dearer by Rs 6.25 from the earlier price of Rs 67.25, according to a press release of NPDA. Similarly, a litre of diesel costs Rs 56.25, dearer by Rs 3.10 and kerosene is Rs 51.02, which is dearer by Rs 3.57 now.
Shiv Prasad Ghimire, president of NPDA, addressing the press meet said that the prices will vary places to places as the private dealers will fix the retail prices after adding their commission in the wholesale prices. "Besides commission, the dealers add shrinkage charge and working loss, insurance and transportation cost, while they fix the retail price," he informed.
The retail price of petrol per litre is at Rs 72.29 from Rs 66.19 for Birgunj. "Similarly, diesel costs Rs 55.03 from Rs 52.03 and kerosene costs Rs 50.12 from earlier Rs 47.17 per litre in Birgunj," according to the NPDA's press note. Whereas in Dipayal, per litre petrol costs Rs 75.66 and kerosene costs Rs 52.94 per litre, the most expensive among all the places."
The retail price is applicable within the 15 km of depos and further than that the price attracts seven per cent transportation cost per km," added Ghimire.
Yesterday, in the late evening press meet, Nepal Oil Corporation (NOC) has raised the prices of petroleum products. Lately, NOC has not only been posting a whopping loss every year, it is also dogged by controversies as there is no transparency in dealing with its sole buyer Indian Oil Corporation (IOC).
The retail price of petrol per litre is Rs 73.50 for Kathmandu valley which is dearer by Rs 6.25 from the earlier price of Rs 67.25, according to a press release of NPDA. Similarly, a litre of diesel costs Rs 56.25, dearer by Rs 3.10 and kerosene is Rs 51.02, which is dearer by Rs 3.57 now.
Shiv Prasad Ghimire, president of NPDA, addressing the press meet said that the prices will vary places to places as the private dealers will fix the retail prices after adding their commission in the wholesale prices. "Besides commission, the dealers add shrinkage charge and working loss, insurance and transportation cost, while they fix the retail price," he informed.
The retail price of petrol per litre is at Rs 72.29 from Rs 66.19 for Birgunj. "Similarly, diesel costs Rs 55.03 from Rs 52.03 and kerosene costs Rs 50.12 from earlier Rs 47.17 per litre in Birgunj," according to the NPDA's press note. Whereas in Dipayal, per litre petrol costs Rs 75.66 and kerosene costs Rs 52.94 per litre, the most expensive among all the places."
The retail price is applicable within the 15 km of depos and further than that the price attracts seven per cent transportation cost per km," added Ghimire.
Yesterday, in the late evening press meet, Nepal Oil Corporation (NOC) has raised the prices of petroleum products. Lately, NOC has not only been posting a whopping loss every year, it is also dogged by controversies as there is no transparency in dealing with its sole buyer Indian Oil Corporation (IOC).
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