NOC slashes price of petrol and diesel by Rs 3 per litre

Nepal Oil Corporation (NOC) has finally decreased the prices of petroleum products, after a pressure from the public.

According to the state oil monopoly, the price of petrol, diesel and kerosene has been reduced by Rs 3 per liter with effect from today midnight.

With the reduction, per liter of petrol will cost Rs 178 and per liter of diesel and kerosene will cost Rs 175. Earlier, the price of petrol was Rs 181 and diesel and kerosene was Rs 178.

The Indian Oil Corporation (IOC) has sent a new price list to NOC today after reducing the price of fuel. In its revised price list sent yesterday, the IOC has reduced the prices of petrol by Rs 6.90 per liter, diesel by Rs 12.31 per liter and aviation fuel by Rs 10.61 per liter. According to the revised price, the NOC earns profits of Rs 17 per liter and Rs 10 per liter, in petrol and diesel, respectively, a press note of the NOC reads, projecting that the NOC will earn a profit of Rs 2 billion in the next one month. NOC, however, has kept the prices of aviation turbine fuel (ATF) unchanged at Rs 190 per liter for domestic airlines and $1.645 for international carriers. Likewise, the price of liquefied petroleum gas (LPG) – popularly known as cooking gas –remains the same at Rs 1,800 per liter, the press note adds.

According to the an auto-pricing system, the NOC can increase the price of petroleum products, if the price in international market goes up, and vice versa. But the NOC – citing its earlier loss – has not been reducing the price of petroleum products, despite price decrease in the international market.

This time, the state oil monopoly has been forced to reduce the price due to public pressure. It has reduced the prices of petroleum products today after five months, though the fuel price in the international market has declined by more than 28 per cent.

Last time the NOC had revised the fuel prices was on July 4, when the price of petrol was increased to Rs 181 per liter, and diesel and kerosene was increased to Rs 172 per liter. Since then, the price of crude dropped to $80.86 per barrel from around $112 per barrel in the international market. 

But the NOC has been repeatedly claiming that it has been adopting the auto-pricing system since September, 2014. Breaching its own policy, the NOC has not been decreasing the price of petroleum products lately. It claims that it still owns Rs 19 billion to its supplier IOC. Despite selling in profits, how the NOC is in red is beyond the imagination that led to suspicion.

The NOC has also set up a price stabilisation fund to adjust the price, if it goes down. But the NOC is blamed for misusing the fund too. Consumer rights activists blame the NOC for passing the price burden (loss) to consumers as it failed to manage the public entity.

The government gives no ear to the rising petroleum prices, as it gets hefty taxes from the petroleum business that has not been regulated through an Act yet despite repeated pressure from the public. The government entity – NOC – is doing billions worth petroleum business without any Act, which is why the petroleum business is under scrutiny.

NOC refuses to reduce fuel prices citing losses

The state oil monopoly increases the price of fuel, if the price goes up but doesnot decrease the price, if it comes down, and claims to be implementing automated pricing system.

And its not for the first time, the Nepal Oil Corporation (NOC) has been doing this. On several occasions, the NOC has not reduced the price, when the price in the international market came down, but increased the price once it witnessed a rise in the international market.

The NOC get its price list twice a month from its sole supplier Indian Oil Corporation (IOC). The automated pricing system came into practice to adjust the price in the domestic market on the basis of the price list the NOC gets from IOC. But this time also, the NOC refused to reduce the price of petroleum products despite buying at cheaper rates from IOC.

Issuing a press note today, the NOC claimed that it is in no state to decrease prices as its accumulated losses have reached Rs 27 billion. But last month, the NOC posted a fortnightly profit of Rs 180 million.

“The corporation is unable to reduce the price according to the new price list it received on November 1, due to fluctuations in the price of petroleum products in the international market,” the press note reads, claiming that it has been operating at a loss for a long time. 

According to new price list sent by supplier IOC, the price of LPG – popularly known as cooking gas – has gone up, while the prices of petrol, diesel, aviation fuel and kerosene have gone down. 

According to the oil monopoly’s press note, the corporation will incur a loss of Rs 368.5 million in 15 days only from the sale of LPG. On the contrary, the corporation will make a profit of Rs 580 million in 15 days from the sale of petrol, diesel, aviation fuel and kerosene.

The ‘bankrupt’ NOC has been, however, blamed of funding political parties, and bigwigs at the cost of people, as according to senior bureaucrats. One of the managing directors (MD) of the NOC, Lok Krishna Bhattarai had refused to share the NOC’s profit with royal palace, almost two decades ago, and resigned. “The tradition still continues, though the royal palace has been replaced with political parties,” claims the retired officials of the NOC that has been a ‘milking cow’ for every political parties.

NOC projects profits

After almost one-and-a-half year, the bankrupt state oil monopoly has projected a profit of Rs 1.60 billion per month after a successive drop in the crude prices in the international market.

According to Nepal Oil Corporation (NOC), it now makes a profit of Rs 6.45 per liter in petrol and Rs 12 per liter in diesel at the new price rates sent by IOC on October 1. IOC sends price list every fortnight on the 1st and 15th of the Gregorian calendar.

Last March, the oil price in the international market reached as high as $125 per barrel, while it came down to $86 per barrel last week. Indian Oil Corporation (IOC), the sole supplier to the NOC has also decreased the price of fuel but the NOC has not been bringing the fuel price down, though it claimed to implement the automated price system. “The NOC has been misusing the automated price system as it increases the price of fuel when the price list sent by IOC increases but it has not been decreasing the price, when the price list has lower price,” complained the consumer rights activists. 

The NOC has been claiming that it has borrowed from the government to pay the IOC, and it owes around Rs 40 billion to various government bodies.

अन्तर्राष्ट्रिय बजारमा भाउ घट्दा नेपालमा घटाउँदैन निगम

एक महिनामा प्रतिलिटर पेट्रोलमा ३२.५६ रुपैया घटेर आएको छ

एक महिनाको अवधीमा इन्डियन आयल कर्पोरेसन (आइओसी)बाट प्रतिलिटर पेट्रोलमा ३२ रुपैया ५६ पैसा घटेर आएको छ । आइओसीबाट भाउ बढेर आउँदा स्वचालित मुल्य प्रणालीका नाममा तत्काल भाउ बढाउने नेपाल आयल निगम भने पछिल्लो एक महिनामा लगातार दुइ पल्ट भाउ घटेर आउँदा पनि स्वचालित मुल्य प्रणालीको उच्चारण गर्न पनि चाहँदैन ।

आइओसीले नेपाललाई बिक्री गर्ने पेट्रोलियम पदार्थको मूल्य घटाएर पठाएको यो दोस्रो पटक हो । प्रत्येक अंगे्रजी महिनाको पहिलो तथा पन्ध्रौ तारिखमा आइओसीले इन्धनको नयाँ मुल्य पठाउँछ । अन्तर्राष्ट्रिय बजारमा कच्चा तेलको मूल्य घट्न थालेपछि यसपटक १६ जुलाई तथा १ अगस्ट गरेर दुई पटक आइओसीले नेपालका लागि पनि मूल्य घटाएर पठाएको छ । 

आईओसीले १ अगस्टमा पठाएको नयाँ मूल्यसूचीअनुसार प्रतिलिटर पेट्रोलमा १६.८० रुपैयाँ तथा डिजेल र मट्टीतेलमा १२.४५ रुपैयाँले घटाएको छ भने यसअघि गत १५ जुलाईमा पनि आईओसीले पठाएको मूल्यसूचीमा प्रतिलिटर पेट्रोलमा १५.७६ रुपैयाँ र डिजेलमा १६.५६ रुपैयाँले मूल्य घटाएको थियो ।

तर, भारतबाट मूल्य घटेर आए पनि निगमले भने अझै पेट्रोलियम पदार्थको मूल्य समायोजन गरेको छैन । यसअघि मूल्य घटेर आउँदा पनि निगमले अझै प्रतिलिटर पेट्रोलमा १४.१९ रुपैयाँ तथा डिजेल र मट्टीतेलमा २१.९२  रुपैयाँ घाटा नै रहेको जनाउँदै मूल्य समायोजन गरेको थिएन । तर १ अगस्टको मुल्यका अनुसार निगमलाई प्रतिलिटर पेट्रोलमा २ रुपैयाभन्दा बढि नाफा हुन्छ । डिजेलमा भने अझै घाटा रहेको निगमको दाबी छ ।

अन्तर्राष्ट्रिय बजारमा प्रति ब्यारेल (१५९ लिटर) कच्चा तेल गत वर्षको १२३ अमेरिकी डलरबाट घटेर हाल १०३ डलरमा झरेको छ । जसका कारण आइओसीले पनि निगमलाई पछिल्लो एक महिनामा र्दुइ पटक भाउ घटाएर पठाएको हो । तर, निगमले आफनो घाटा बाँकी नै रहेकाले भाउ कम गर्न सक्ने अवस्था नरहेको जनाएको छ । निगमका अनुसार हाल आइओसीलाई १४ अर्ब रूपैयाँ अझै तिर्न बाँकी छ । साथै, मूल्य घटेर आउँदा पनि १५ दिनमा ७५ करोड घाटा छ भने मासिक १.५० अर्ब घाटामा हुने निगमले जनाएको छ । भारतले पठाएको नयाँ मूल्य अनुसार निगमलाई पेट्रोलमा नाफा हुने भएकाले निगमको घाटाम सुधार हुने देखिन्छ ।

आयल निगमले आइओसीबाट सबै किसिमका प्रशोधित पेट्रोलियम पदार्थ किन्दै आएको छ । यसरी पेट्रोलियम किनेबापत आइओसीले हरेक पन्ध्र–पन्ध्र दिनमा आयल निगमलाई मूल्य पठाउने गर्छ। सोही मूल्यका आधारमा निगमले उपभोक्ता मूल्य तोक्छ । आइओसीले अन्तर्राष्ट्रिय बजारबाट किन्ने कच्चा तेलको लागत मूल्यमा आफ्नो प्रशोधन शुल्क लगायत खन्य खर्चहरू जोडेर नेपालको निम्ति बिक्री मूल्य तय गर्छ ।

निगमले उपभोक्तालाई हाल पेट्रोल १८१ मा तथा डिजेल र मटितेल १७२ बिक्री गर्दै आएको छ भने हवाई इन्धन (आन्तरिक) १ सय ९० मा बिक्री गर्दै आएको छ । हवाई इन्धन (बाह्य) १.६४५ अमेरिकी डलरमा बिक्री गर्दै आएको छ । साथै खाना पकाउने एलपी ग्यास १८ सयमा बिक्री गर्दै आएको छ ।

इन्धनको मुल्य बढेका कारण यातायातदेखि बजार भाउसम्म सबै बढेको छ । नेपाल राष्ट्र बैंकको सर्वेक्षणअनुसार हाल पनि बजारमा १४ प्रतिशतको मुल्यबृद्धि छ भने आगामी तीन महिना अर्थात् दशैं तिहारमा पनि मुल्यबृद्धि १४.२ प्रतिशत नै हुने अनुमान गरिएको छ । 

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.

Nepal Oil Corporation jacks up fuel prices to record level

Nepal Oil Corporation (NOC) has increased the prices of petrol by Rs 21 to Rs 199 per liter and diesel and kerosene by Rs 27 to Rs 192 per litre, effective from midnight.

This is the highest increment ever made by the state oil monopoly, as the bankrupt NOC failed to pay its sole supplier.

Likewise, the corporation has also increased aviation turbine fuel (ATF)-domestic by Rs 19 to Rs 185 per liter, and ATF – international by $100 to Rs $1,645 per kiloliter.

The price of the Liquefied Petroleum Gas (LPG), popularly known as cooking gas, has not been hiked, though it also incurs loss, according to the NOC that has been incurring losses despite the rise in the petroleum prices. The corporation said that it is incurring a loss of Rs 2.28 billion in LPG alone. A cylinder of LPG now costs Rs 1800.

Claiming that it has hiked the prices of petroleum products in line with the international price, the corporation said it is still facing an extreme financial crisis. The NOC will have Rs 22 billion due to be paid to Indian Oil Corporation (IOC) for the purchase of petroleum products by June 23.

Despite the hike, the corporation will be facing a monthly loss of around Rs 4.70 billion, it claimed, adding that the accumulated losses have been expected to reach Rs 55 billion by June end.

The continuous rise in the price of petroleum products has pushed the inflation up, beyond the control of the government and central bank.

According to Nepal Rastra Bank (NRB), the year-on-year consumer price inflation jumped to 7.87 per cent in May, hitting a 69-month high.

The Russia-Ukraine war has affected the international fuel market forcing the global market adjust price. On Thursday (June 16), the sole supplier of fuel to the NOC, IOC had sent an increased price list. According to the new price list sent by IOC on Thursday, the price of petrol, diesel and aviation fuel was increased by Rs 6.52, Rs 19.3 and Rs 91.91 per liter, respectively.

Government cuts civil servants’ fuel allowances by 20 per cent

To reduce the fuel imports, the government has cut down fuel allowances of civil servants by 20 per cent. The reduction of import of petroleum products is expected to put less pressure to the depleting foreign currency reserves.

The Finance Ministry, sending a circular to all government offices on Monday, said that it is trying to reduce expenses incurred on fuel from Monday till three months, throughout the current fiscal year.

The ministry press note  reads that a cabinet meeting on Wednesday had decided to cut the expenses on petroleum products of all the government offices and public enterprises. 

The government move is expected to cut down the expenses on fuel to save the foreign currency reserve. “The government offices will have to spend only 80 per cent of their fuel budget,” a Finance Ministry source claimed, adding that the provision will, however, not applicable for the development projects, securities, essential services and those part of the local elections.

The government currently provides 207 liters of fuel to minister-level, 100 liters each to secretaries and 70 liters for joint secretary-level government employees. Nepal has imported around 200 billion worth petroleum products from India. But with increasing petroleum prices due to Russia-Ukraine war, the Nepal Oil Corporation (NOC) is bankrupt also due to free fuel to various former ministers and political cadres.

AOAN demands reduction of aviation fuel price

The Airlines Operators Association of Nepal (AOAN) has demanded the government to reduce the price of aviation fuel for the domestic air service.
As the government is preparing to resume domestic flights that have been suspended since March 22 due to fear of Covid-19 transmission while traveling, the operators have today asked – issuing a press note – the government to revise the price of aviation fuel downwards.
“As the government has asked to operate the flights maintaining the physical distance, the flights will have only half passenger,” the association said, adding that flying with half the seat-capacity of the aircraft will not be possible. The association has also suggested the Ministry for Culture, Tourism and Civil Aviation to lobby for letting aircraft operate as per their capacity, make arrangements so that air crew do not have to be quarantined in the destination, let taxi and other public vehicles along with hotels and restaurants operate.
Likewise, the association has suggested the government to start operation of domestic flights – in phases – starting from July 1. “In the first phase, the flights to the mountainous districts should be operated,” the association recommended, whereas flights to the Terai region should be started in the second phase. “The dates will be, though, fixed by the Civil Aviation Authority of Nepal (CAAN), the domestic carriers are ready to start operation, provided, the government reduce aviation fuel price.”
Nepal Oil Corporation (NOC) has priced aviation fuel – popularly known as aviation turbine fuel (ATF) – at Rs 65 per liter, whereas the price of fossil fuel has decreased in recent months. The state oil monopoly has not revised the fuel prices since last couple of months as the government has imposed lock down to contain the spread of coronavirus (covid-19). The NOC fixes price according to the price reference set by the Indian Oil Corporation (IOC) that send the price list every fortnight.
The association has also suggested the government to sell aviation fuel with only Rs 10 profit per liter for NOC to make the airline service accessible and beneficial. “If the aviation fuel’s price is not revised downwards, the operators will not be able to operate air service,” the association clarified.
Though, the government has – in the budget for fiscal year 2020-21 – announced the exemption of infrastructure development charge on aviation fuel and removal of customs duty, the price of aviation fuel still is higher based on the revised price list sent by the IOC.

Price of petrol, diesel down, cooking gas up

Nepal Oil Corporation (NOC) has reduced the price of petrol, diesel and kerosene by Re 1 per litre, each effective from tonight.
The state oil monopoly has but increased price of Liquefied Petroleum Gas (LPG) – popularly known as cooking gas – by Rs 25 per cylinder, according to the NOC. “With these adjustments, price of petrol will cost Rs 110 per litre, while price of diesel and kerosene will cost Rs 99 per litre each,” the NOC spokesperson Birendra Goit said, adding that the cooking gas will cost Rs 1,375 per cylinder. “The fuel prices have been revised in line with prices of petroleum products determined by Indian Oil Corporation (IOC) for February.”
The IOC sends petroleum price every fortnight, according to the international price fluctuation. The domestic price is however, depended on the price list the IOC, which is the sole supplier of the petroleum products to NOC.

NOC jacks up fuel prices

The Nepal Oil Corporation (NOC) has increased the price of petrol, diesel and kerosene by Rs 2 effective from Wednesday midnight.
“With this increment, petrol is priced at Rs 111 per litre while diesel and kerosene will cost Rs 100 in Kathmandu,” confirmed NOC spokesperson Birendra Goit. The NOC has made an adjustment based on revised rates forwarded by the Indian Oil Corporation (IOC) – the sole supplier of the fuel to the NOC – today.
However, the price of cooking gas and aviation fuel remained unchanged, he said, adding that the price of petroleum products in places close to Nepal-India border areas will be slightly lower compared to the prices in Kathmandu valley.
Earlier, on December 17, the NOC had raised the price of diesel and kerosene by 1 rupee per liter each, while keeping the petrol price unchanged. But on December 2, the prices of petrol, diesel and kerosene were hiked by Rs 2 per liter each.
After lowering the price by Rs 2 per liter on September 10 – after the formal launch of the Motihari-Amlekhgunj, India-Nepal cross border petroleum pipeline – the NOC has already raised the price of petrol by Rs 4 per litre.

NOC jacks up petrol, diesel, kerosene prices by Rs 2 per litre

Though, the price of petroleum products have been decreasing in the international market, the state oil monopoly has increased the price of petrol, diesel and kerosene by Rs 2 per litre effective from midnight.
Nepal Oil Corporation spokesperson Birendra Goit confirmed that petrol will cost Rs 109 per litre, while the price of diesel and kerosene has been adjusted to Rs 97 per litre effective from tonight. “The prices were adjusted with the increase in fuel prices in the internal market.”
The NOC, however, claimed that the raise in retail prices of petrol, diesel and kerosene is in line with the revision in the price list forwarded by the Indian Oil Corporation (IOC) – the sole supplier of petroleum products to Nepal.
The NOC increased the prices of petrol, diesel and kerosene nearly three months after lowering their price. Earlier on September 10 – coinciding with the formal launch of the India-Nepal cross border petroleum pipeline (Motihari-Amlekhgunj – it had lowered the price of petrol, diesel and kerosene by Rs 2 each.
On September 20 again, the NOC has slashed the price of liquefied petroleum gas (LPG) – popularly known as cooking gas – by Rs 25 to Rs 1,350 per cylinder. Likewise, it has also lowered the price of ATF by $50 to $1,000 per kiloliter (kl) as an incentive for international airlines on the eve of Visit Nepal Year 2020 (VNY2020) campaign, and also in the wake of growing complaints from airlines companies that the fuel in Nepal was very expensive.

Fuel price for international airlines slashed by $50 per kiloliter

The state oil monopoly has slashed the price of aviation turbine fuel (ATF) by $50 per kiloliter (kl) for international carriers, according to the Nepal Oil Corporation (NOC).
Now, the price of the ATF for international carriers stands at $1,000 per kl, down from $1,050, according to NOC spokesperson Birendra Goit, who said that the price of the ATF for international carriers has been lowered to help in making the Visit Nepal Year 2020 a success.
The NOC brought the price of ATF down as the tourism and international airlines companies complained that the jet fuel price is too high in Nepal, distracting the tourists, he said, adding that international airlines have long been complaining that the price of the ATF is very high in Nepal which has not only been a factor of high airfare but also discouraging to add more flights.
The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) was also urging the Ministry of Industry, Commerce and Supplies to lower the price of the ATF in line with the demands of the international airlines and tourism entrepreneurs. But the international airlines companies say that the reduction in the price is very low.
According to Goit, the NOC has been using the profit earned from the high ATF price to subsidise the losses that it incurs in other petroleum products.
Likewise, the NOC has also lowered the retail price of Liquefied Petroleum Gas (LPG) by Rs 25 per cylinder yesterday to Rs 1,325 to be effective from today midnight. “The NOC decided to revise down the price of LPG yesterday and brought into effect from today midnight,” he said, adding that the price of the LPG is, however, lowered only for the Kathmandu valley.
According to a press note issued by the NOC, it has decided to lower the price of the LPG – popularly known as cooking gas widely used by households in Nepal – after it got the revised the rate from the Indian Oil Corporation (IOC), the sole supplier of petroleum products to Nepal.
Earlier on September 11, the NOC has reduced the price of diesel, petrol and kerosene by Rs 2 per liter coinciding with the formal launch of the India-Nepal cross border petroleum pipeline from Motihari to Amlekhgunj.

Fuel prices drops after cross-border petroleum pipeline comes into operation

Nepal Oil Corporation (NOC) has reduced the price of diesel, petrol and kerosene by Rs 2 per liter effective from today noon.
The state-owned oil monopoly confirmed that after the decision to lower the price of the petroleum products, petrol will cost Rs 107 per liter in Kathmandu valley, while diesel and kerosene will cost for Rs 97 per liter each. “The decision to revise price downward has been taken after formal launch of the India-Nepal cross border petroleum pipeline from Motihari to Amlekhgunj,” the NOC said, adding that the prime ministers of Nepal and India jointly inaugurated the cross border petroleum pipeline today morning.
Jointly inaugurated by Prime Minister KP Sharma Oli from Kathmandu and Indian Prime Minister Narendra Modi from New Delhi through a remote control, the 69-kilometer petroleum pipeline has helped reduce the price of petroleum products as expected, the NOC said, adding that supply of fuel from the pipeline is estimated to save Rs 2 to Rs 5 per liter in transportation cost, apart from the guarantee of smooth supply and efficiency.
The first cross-border petroleum pipeline in South Asia can pump NOC, however, has also attributed the reduction in petroleum prices to downward revision in prices in the international market, savings from the supply of fuel through the newly inaugurated cross-border pipeline and fluctuation in foreign currency exchange.
NOC – issuing a press note today – said that the price has been revised according to its 'automated pricing mechanism' system. Under the mechanism, NOC revises the fuel prices in line with the fluctuation of prices of petroleum products in the international markets, based on the price it receives from its sole supplier Indian Oil Corporation (IOC).

Nepali, Indian PM jointly inaugurate cross border fuel pipeline

Prime Ministers from Nepal and India today jointly inaugurated the first cross-border petroleum pipeline in South Asia through a video conference via remote control. Both the prime ministers switched on the pipeline from their respective offices at Singha Durbar in Kathmandu and Hyderabad House in New Delhi via videoconferencing.
“The formal inauguration took place after Prime Minister KP Sharma Oli and his Indian counterpart Narendra Modi pressed a switch through a live video conference connecting the Prime Minister’s Office at Singha Durbar in Kathmandu, and Office of the Indian Prime Minister in New Delhi with Amlekhgunj-based oil depot of Nepal Oil Corporation (NOC) and Motihari-based depot of the Indian Oil Corporation (IOC),” according to a Nepal Oil Corporation (NOC).
“I thank my friend Modiji and the Government of India for the completion of the project ahead of the deadline. Congratulations to the Nepali team associated with the project,” Oli tweeted, after the inauguration.
Likewise, Modi wrote in a tweet: “It's a matter of great satisfaction that South Asia's first-ever cross-border petroleum pipeline has been completed in a record time. This project has been completed in half the time than expected. The credit goes to your leadership, Government of Nepal and our joint efforts.’
The 69-kilometre-long pipeline will transport fuel from India’s Barauni refinery in Bihar to Amalekhgunj in Nepal. Of the 69 kilometres, some 36 kilometres of the pipeline is on the Nepali side and the rest on the Indian side.
In Singha Durbar foreign minister Pradeep Kumar Gyawali, minister for Industry, Commerce and Supplies Matrika Prasad Yadav, Indian ambassador to Nepal Manjeev Singh Puri were present, whereas Nepali ambassador to India Nilambar Acharya was present with the Indian Prime Minister Modi in New Delhi during the inauguration. Likewise, executive director of Indian Oil Corporation (IOC) JP Sinha handed over diesel in a pot to executive director of Nepal Oil Corporation (NOC) Surendra Paudel after the inauguration by both the prime ministers.
First proposed in 1996, the Motihari-Amlekhgunj cross border petroleum pipeline finally moved forward after Indian PM Modi’s visit to Kathmandu in 2014. Then Indian Minister for Petroleum and Natural Gas Dharmendra Pradhan and then Commerce and Supplies Minister Sunil Bahadur Thapa signed a pact in August 2015 to get the pipeline project rolling. But the devastating earthquakes in 2015 delayed the construction of the project, finally completing before the deadline, in fact in record time, also making it the fastest completed bilateral project between the two countries.
If operated for 15 hours daily, the 10-inch diameter pipeline with a capacity of 2 million metric tonne per annum (MMTPA) can supply around 4,000 kilolitres of petroleum products in a day and 294-kiloliters per hour. The Nepal-India cross border petroleum pipeline is expected to help solve the oil storage problem in Nepal apart from ensuring continuous, quality and eco-friendly supply of petroleum products to Nepal, and reduce transit costs that will bring the price of the petroleum prices down.
The supply of fuel from the pipeline is estimated to save Rs 2 to Rs 5 per liter spent in transportation of the products through tankers.
According to a press note issued by the Embassy of India in Kathmandu, the pipeline is equipped with the latest SCADA tele-supervisory system and the most advanced leak detection system. “The signals of any tinkering or damage to the pipeline will be received through the optic fibre cable along the pipeline at the control centres, including at Amlekhgunj depot,” the press note reads adding that the total project cost stands at Rs 3.5 billion Indian Currency (IC), out of which Rs 750 million IC is borne by the NOC and the remaining portion is covered through Indian grants. “The IOC and NOC are also working to build an additional storage facility at Amlekhgunj depot, which will augment the storage of petroleum products in Nepal.”
IOC has started supplying petroleum products to NOC way back in 1974.

PM Oli, Modi to inaugurate oil pipeline tomorrow

Prime Minister KP Sharma Oli and his Indian counterpart Narendra Modi will virtually inaugurate the first cross-border petroleum pipeline in South Asia tomorrow through video conference.
According to the Ministry of Industry, Commerce and Supplies (MoICS), the formal inauguration will be marked by pressing a switch button via remote control by the executive heads of both countries through a live video conference connected simultaneously in between the Prime Minister’s Office at Singha Durbar in Kathmandu and Office of the Indian Prime Minister in New Delhi.
“The two heads of states are scheduled to press the pipeline switch that opens the valve of the petroleum pipeline at the presence of high-level government dignitaries of both countries at the conference,” informed NOC deputy executive director Sushil Bhattarai.
The Amlekhgunj-based oil depot of Nepal Oil Corporation (NOC) and Motihari-based depot of the Indian Oil Corporation (IOC) will witness the official ceremony of inauguration on the ground by handing over a bottle of diesel from the pipeline among the officers of the IOC and NOC.
The NOC and IOC had successfully concluded the ‘testing transfer’ of the Motihari-Amlekhgunj pipeline project last month. The IOC – through its refinery in Motihari – had supplied diesel to NOC’s Amlekhgunj-based depot last month during the testing transfer. However, NOC had unloaded only 1,000 kilolitres of the 3,100 kilolitres of diesel supplied by IOC via the pipeline to test the newly constructed tanks at Amlekhgunj.
According to the NOC, the pipeline is able to supply 394 kilolitres of petroleum products per hour. “In the initial phase, NOC plans to receive only diesel, which is about the 70 per cent of total petroleum product imports, through the pipeline,” the NOC informed, adding that some 3,000 kilolitres of diesel will be imported per day through the pipeline, after the pipeline is formally inaugurated.
Though, the Motihari-Amlekhgunj oil pipeline was first proposed in 1996, it finally took off during Indian Prime Minister Modi’s visit to Kathmandu in 2014. The two governments inked an agreement to construct the first cross border pipeline – that is expected to reduce the cost of transportation of petroleum products worth Rs 1 billion – in the South Asia in August 2015. But, the project construction was again delayed due to devastating earthquake of 2015. “After the commercial operation of the pipeline, it will bring down fuel price by at least Re 1 per litre in the domestic market,” according to the NOC.

LPG price comes down by Rs 25 per cylinder

Nepal Oil Corporation (NOC) has adjusted the price of petroleum products effective from today.
The state petrol monopoly has slashed the price of liquefied petroleum gas (LPG) by Rs 25 per cylinder, bringing the price down to Rs 1,375 per cylinder, whereas it has increased the price of petrol by Re 1, and diesel and kerosene by 50 paisa per liter, respectively.
According to the spokesperson of the NOC Birendra Goit, petrol, diesel and kerosene will now cost Rs 109, Rs 97 and Rs 97 per liter, respectively. “The new prices came into effect from today itself,” he said, adding that the price has been revised according to the automated pricing system. “The NOC receives price of list of products from Indian Oil Corporation (IOC) every fortnight, and revises the price in the domestic market too.”
The IOC sends price rate on 1st and 16th of every Gregorian month.
The NOC has kept the price of aviation turbine fuel (ATF) unchanged, Goit added.

Cross border petro pipeline to open from next month

The first cross border petroleum pipeline in South Asia will start commercial operation by the first week of August following virtual inauguration of the Nepal-India bilateral project by the heads of the states.
The Motihari-Amlekhgunj oil pipeline project has been completed and is awaiting its formal inauguration by the Prime Ministers of Nepal KP Sharma Oli and his Indian counterpart Narendra Modi, according to the state oil monopoly. “The two Prime Ministers will officially open the fuel trade via the pipeline through the remote control, though the date for the official inauguration is yet to be fixed.”
Nepal Oil Corporation (NOC), the two governments are working to ensure that inauguration of the project takes place in the first week of August. “The virtual inauguration of the project will be done through video conferencing, where the two prime ministers will press a button in New Delhi and Kathmandu, resulting in opening of the valve of the petroleum pipeline,” the petroleum monopoly informed.
First proposed in 1996, the Motihari-Amlekhgunj petroleum pipeline memorandum of understanding was signed with Nepal Oil Corporation at the junior executive level a year later. In 2004, the two sides upgraded the agreement to the chief executive level. However, due to a number of legal hurdles, the project failed to take off. The project finally moved closer to reality during Indian PM Modi’s visit to Kathmandu in 2014. The then supply minister Sunil Bahadur Thapa and Indian state minister for petroleum and natural gas Dharmendra Pradhan signed an agreement on August 24, 2015 on constructing the Motihari-Amlekhgunj petroleum pipeline within 30 months, though the project was delayed due to devastating earthquake. But still Motihari-Amlekhgunj petroleum pipeline is the only mega project completed in time, apart from being the bilateral project completed in time.
“The NOC and Indian Oil Corporation (IOC) today successfully tested the Motihari-Amlekhguni pipeline project,” the NOC said, adding that the IOC – through its refinery in Motihari – had supplied diesel to NOC’s Amlekhgunj-based depot yesterday, and received it today. “However, NOC will unload only 1,000 kilolitres of the 3,100-kilolitre diesel supplied by IOC via the pipeline to test the newly constructed tanks at Amlekhgunj.”
Though the project was estimated to cost Rs 2.75 billion Indian Currency (IC) with Indian government injecting Rs 2 billion IC and Rs 750 million IC by NOC and the remaining Indian grants, the final project cost escalated to almost Rs 3.25 billion IC. “The 69.2-km-long pipeline was completed with the budget of Rs 5.18 billion,” the NOC added. Of the Motihari- Amlekhgunj pipeline’s total length, 36.2 km lies within Nepali territory. The fuel pumping facilities will be located in Motihari, India. It is estimated that 300 kilolitres to 350 kiloliters of diesel can be supplied through the pipeline per hour.
The cross border petro pipeline is going to save NOC’s around Rs 2 billion – in transportation and ensure smooth supply of diesel, even during the strikes in Terai – helping it to bring down the petroleum price in the domestic market.
Under the first phase of the project, a pipeline will be laid from Raxaul to Amlekhgunj. In the second phase, it will be extended to Kathmandu.
Though some of the energy experts claim that the cross border pipeline will make Nepal further dependent on India because Nepal has to deal with a single company, officials say the pipeline will be a boon for the country, not only in reducing transportation costs and eliminating the hassles of hiring tanker trucks but also running operation during strikes that often hamper petroleum imports through the Indian border. “Most importantly, the pipeline will end fuel adulteration,” the NOC claimed, adding that fuel adulteration is a major problem. “The Nepal Bureau of Standards and Metrology reports revealed that the diesel sold in the valley is heavily adulterated.”

Nepal-India cross border pipeline nears ready for operation

Laying of Nepal-India cross border pipeline – connecting Motihari in India to Amlekhgunj in Nepal – is finally coming to an end.
The South Asia's first cross border petroleum pipeline that covers a distance of 70.2-km will have to tested before it starts flowing diesel, which will save around Rs 2 billion of transportation cost apart from ensuring the smooth flow of diesel even in the times of unrest in the southern plains.
Estimated to cost around Rs 2.75 billion, the petroleum pipeline covers a distance of 32.65-km from Motihri to Raxaul on the Indian side was completed a month ago, and the task of laying pipeline for a distance of 37.25-km from Raxaul to Amlekhgunj of Bara on the Nepal side is also over, according to the Nepal Oil Corporation (NOC). “The pipeline's technical examination – including hydro-test, radiography of pipes joined by welding, taking X-ray at the points where the pipes have been joined and removing the rust in the pipe through scan-plast have started with the completion of the pipeline laying works – is underway,” it informed, adding that a 25-member technical team, including NOC engineers, has left for Lucknow for training on hydro-test and other technical works of the pipeline. The sole supplier of the petroleum products to Nepal Indian Oil Corporation (IOC) is providing training to the technicians to make them capable to take care of the petroleum pipeline.
After signing an agreement to lay the pipeline on August 24, 2015, Prime Minister KP Sharma Oli and his Indian counterpart Narendra Modi during Oli's India visit jointly laid the foundation stone for Motihari-Amlekhgunj petroleum pipeline project at the Hyderabad House in New Delhi.

Petroleum pipeline nears completion

Construction of Motihari-Amlekhgunj fuel pipeline nears completion as 99 per cent of the pipe-laying process has been completed.
According to Nepal Oil Corporation (NOC), around 99 per cent of the installation of petroleum pipeline on the Motihari-Amlekhgunj has been completed. “The pipe laying process of 36.6-kilometre on Nepal side has been completed,” the fuel monopoly said, adding that Indian Oil Corporation (IOC) – which is the project developer – has already completed laying pipes along 32.7-km within the Indian territory. “Petroleum products from India will be imported to Nepal via the 78-km pipeline under the project, which is the first cross-border project in the entire South Asia.”
Though, the project is estimated to come into operation from mid-April, the launch date has been rescheduled for mid-July. A total of 25 Nepali technicians are currently in India to receive an eight-day training that IOC is providing to handle the project. “After the training of technicians concludes, the pipeline’s ownership will be handed over to Nepal.”
The project – with a total cost of over INR 2 billio – is expected to reduce the annual cost of importing petroleum products from India to Nepal by road by Rs 2 billion. NOC plans to further expand the petroleum pipeline up to Lothar in Chitwan, the fuel monopoly added.

Nepal Oil Corporation hikes petro-prices

Nepal Oil Corporation (NOC) has hiked the price of petrol, diesel and kerosene by Rs 2 per litre each to be effective from Saturday midnight.
With the revision in fuel price, petrol now costs Rs110 per litre and diesel and kerosene each costs Rs 97 per litre.
With the latest revision, the state-oil monopoly is expected to earn a profit of Rs 1.16 billion in 15 days, as the price in the international market is going down.
The price of aviation fuel and LPG – popularly known as cooking gas – has not been changed, according to the NOC, which has claimed that the fuel price was adjusted as per the new price list sent by Indian Oil Corporation (IOC), the sole supplier of the petroleum products for NOC.