Govt promoting black market in fuel: Industrialists

300 tankers have entered Valley with 6 million liters fuel since Thursday

KATHMANDU, Nov 16 : The government is promoting the black market in fuel, citing the petroleum shortage due to the blockade imposed by India and the Madhes unrest, according to industrialists.

The shortage of fuel due to the supply chain disruption has been a boon to black marketeers and they have raked in about half a billion rupees in the last five days, they said and alleged that the illegal money has been pocketed by some officials of Nepal Oil Corporation (NOC), depot heads and even some politicians. “How can they pocket the illegal money so easily without the involvement of higher-up government officials and politicians,” the industrialists asked.

Despite the blockade and the Madhes unrest, around 300 tankers have entered Kathmandu Valley from various customs points across the country in the past five days. The 300 tankers ferried in some 6 million liters of fuel, which could have fulfilled 60 percent of the market demand had it been distributed transparently. However, NOC is directly involved in institutional corruption and it has raked in Rs 1.5 million extra per tanker on average. “A 20,000-liter tanker of petrol normally costs Rs 2.08 million, but we are paying Rs 3.5 million in black,” said one industrialist, without wishing to be named. “Likewise, a 20,000-liter tanker of diesel costs Rs 1.62 million, but we are paying Rs 2.6 million in black.”
NOC Managing Director Gopal Bahadur Khadka, speaking last week at a press meet, asked consumers not to queue up at petrol pumps as NOC had no fuel. But the petrol pumps are distributing petrol.
NOC is distributing fuel to only a few petrol pumps that pay extra, another industrialist said, adding that consumers have been forced to pay Rs 450 for a litre of petrol and Rs 400 for diesel. These petrol pumps call the consumers either early in the morning or late at night, to come fill up their vehicles.”
However, NOC -- the frontline market regulator -- is suspiciously silent about the huge prices the pumps are charging. “This proves the dirct involvement of NOC.”
The local administration is also suspiciously mum over NOC’s hand in promoting the black market in fuel, the industrialist said. The streets of Kathmandu Valley have started seeing traffic jams due to increased movement of private vehicles, whereas public transport vehicles are still queuing at pumps across the Valley.
Petroleum tankers have been entering from various customs points including Gaurifanta in the west and Kakarvitta in the east, though the flow is not yet back to normal. “Institutional corrpution and red tape have been an open secret but the government is not seen to be doing anything to protect the citizens,” the industrialist added.