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Birat Petroleum imports petrol despite terminating supply contract

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BIRATNAGAR, Dec 25: Birat Petroleum Pvt Ltd has imported fuel from India after unilaterally terminating supply contract signed with Nepal Oil Corporation (NOC).

Nearly 97,000 liters of petrol imported by the company from Kolkata-based Haldia Petrochemicals Limited entered the country via Jogbani customs on Thursday. Birat Petroleum is transporting the fuel to Kathmandu using five Indian tankers on Friday.

Birat had unilaterally terminated supply contract on November 7 after NOC's decision to award supply contract to it fell into controversy.

However, it has been revealed that Birat Petroleum obtained the go-ahead of the Ministry of Commerce and Supplies to import petroleum products from India and third countries for six months.

“The permission is issued in accordance with the authority provided by Clause 3 of Export and Import (Control) Act, 2013 and the decision of the cabinet meeting held on October 19 to allow Birat Petroleum to import petroleum products for six months,” reads the letter issued by MoCS to Birat Petroleum and obtained by Republica.

Mahesh Gautam, a director of Birat Petroleum, confirmed that the company has started fuel imports. “We terminated the contract with NOC as it created media hullaballoo and also fell into controversy. Now we have started importing fuel India as per the cabinet decision” he added.

The first lot of fuel will be distributed in Kathmandu only. “We will start supplying petroleum products in other parts of the country as well once fuel shortage in Kathmandu eases to some extent,” said Gautam.

Rajendra Dhungana, an officer at Biratnagar Customs Office, said five tankers carrying petrol imported by Birat Petroleum have entered the country through Jogbani customs point. “We completed customs clearance facilities based on the letter of MoCS,” he added.

The fuel imported from Haldia Petrochemicals will be expensive compared to petroleum products purchased from Indian Oil Corporation. Gautam said petrol will be expensive as the company has imported petrol of Euro 4 standard. He also said the company will import diesel, air turbine fuel and LP gas in the coming days.

The contract to provide petroleum supply contract to Birat Petroleum had landed into controversy after NOC unlawfully issued Rs 200 million to the firm to open Letter of Credit (LC) the purpose of importing petroleum products to Nepal in the first week of November. The contract was awarded to Birat Petroleum on the direction of NOC Managing Director Gopal Bahadur Khadka even though the rate quoted by the firm was at least Rs 30 per liter higher than the ones quoted by other bidders.



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