NOC continues to overprice ATF

Price will be revised once IOC forwards new rates: NOC

KATHMANDU, Feb 16: Nepal Oil Corporation (NOC), which had raised price of Aviation Turbine Fuel (ATF) significantly to make up for losses incurred while airlifting the fuel during Indian blockade, is continuing to charge the old rate even though the airlifted fuel is already sold out.

NOC is continuing to charge airlines Rs 164.8 per liter for ATF which is Rs 46 per liter more than what it used to charge before the blockade.

SUJAN DHUNGANA
KATHMANDU, Feb 15
Nepal Oil Corporation (NOC), which had raised price of Aviation Turbine Fuel (ATF) significantly to make up for losses incurred while airlifting the fuel during Indian blockade, is continuing to charge the old rate even though the airlifted fuel is already sold out.
NOC is continuing to charge airlines Rs 164.8 per liter for ATF which is Rs 46 per liter more than what it used to charge before the blockade.
Earlier, the state-owned petroleum monopolist had expressed commitment to reduce price of ATF once the airlifted fuel is sold out.
NOC’s depot at Tribhuvan International Airport sold an average of 80 KL of ATF per day over the past 10 days. This means 800 KL of airlifted ATF has already been sold out.
A few days ago an official of NOC had told Republic that price of ATF will be revised once the stock of 500 KL of ATF is sold out. But NOC has failed to live up to its commitment.
NOC had raised price of ATF to Rs 164.8 from Rs 118 per liter on November 9. While increasing the price, NOC had stated that price adjustment was necessary to recover losses that it incurred while importing ATF from different sources during the blockade. NOC had allowed Nepal Airlines Corporation (NAC) and private firm Petrolimex to import ATF during the crisis.
“NOC had expressed commitment to reduce ATF’s price from February 12 after clearing the stock of airlifted ATF,” an official of Airline Operators’ Committee-Nepal (AOC-N) told Republica, adding, “However, NOC seems to be in no mood to slash price of ATF any time soon.”
According to the official, international airlines flying to Kathmandu from different Gulf countries are making technical landing in India and Bangladesh for refilling as price of ATF in Nepal is much higher than these countries.
NOC is charging US$ 1,530 per KL for ATF which is $205 more than the normal price, according to AOC-N.
Stating that high ATF price is troubling operators, the AOC-N official said they were mulling over knocking the doors of Commission for the Investigation of Abuse of Authority (CIAA) as NOC is not serious about reducing the price.
Sushil Bhattarai, deputy executive director of NOC, told Republica that the airlifted ATF has been sold out. “However, we cannot reduce price overnight. We are awaiting the new price rates of Indian Oil Corporation (IOC). Price will be adjusted once we received new rates,” he added.
He also said NOC was said NOC was preparing a mechanism by means of which ATF price will be revised in line with change in its price in the international market.

Earlier, the state-owned petroleum monopolist had expressed commitment to reduce price of ATF once the airlifted fuel is sold out.

NOC’s depot at Tribhuvan International Airport sold an average of 80 KL of ATF per day over the past 10 days. This means 800 KL of airlifted ATF has already been sold out.

A few days ago an official of NOC had told Republic that price of ATF will be revised once the stock of 500 KL of ATF is sold out. But NOC has failed to live up to its commitment.

NOC had raised price of ATF to Rs 164.8 from Rs 118 per liter on November 9. While increasing the price, NOC had stated that price adjustment was necessary to recover losses that it incurred while importing ATF from different sources during the blockade. NOC had allowed Nepal Airlines Corporation (NAC) and private firm Petrolimex to import ATF during the crisis.

“NOC had expressed commitment to reduce ATF’s price from February 12 after clearing the stock of airlifted ATF,” an official of Airline Operators’ Committee-Nepal (AOC-N) told Republica, adding, “However, NOC seems to be in no mood to slash price of ATF any time soon.”

According to the official, international airlines flying to Kathmandu from different Gulf countries are making technical landing in India and Bangladesh for refilling as price of ATF in Nepal is much higher than these countries.

NOC is charging US$ 1,530 per KL for ATF which is $205 more than the normal price, according to AOC-N.

Stating that high ATF price is troubling operators, the AOC-N official said they were mulling over knocking the doors of Commission for the Investigation of Abuse of Authority (CIAA) as NOC is not serious about reducing the price.

Sushil Bhattarai, deputy executive director of NOC, told Republica that the airlifted ATF has been sold out. “However, we cannot reduce price overnight. We are awaiting the new price rates of Indian Oil Corporation (IOC). Price will be adjusted once we received new rates,” he added.

He also said NOC was said NOC was preparing a mechanism by means of which ATF price will be revised in line with change in its price in the international market.