KATHMANDU, Nov 4: Nepal Oil Corporation (NOC) has unlawfully issued Rs 200 million to Birat Oil, a private petroleum company, to open Letter of Credit (LC) for importing petroleum products to Nepal.
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Moreover, the state-owned fuel monopolist plans to purchase petroleum products imported by Birat Oil at inflated rate.
Birat Oil is supplying petrol to NOC at Rs 199 per liter and diesel at Rs 187 per liter. Petrol is currently retailed at Rs 104, while diesel costs Rs 81 per liter.
Twenty-two domestic and international firms had shown interest to supply petroleum products to Nepal after NOC sought Expression of Interest (EoI) last month.
A highly placed NOC official said the tender to supply fuel to Birat Oil was given to Birat Oil on the direction of NOC Managing Director Gopal Bahadur Khadka. The official said rates quoted by other firms are at least Rs 30 per liter lower than the ones quoted by Birat Oil. Moreover, other firms had not sought funds from NOC to open LC.
“As per the contract, NOC will have to buy fuel bought from its money,” the official said. “Our calculation shows Birat Oil will make profit worth Rs 40 million without making any significant investment.”
Birat Oil is bringing diesel and petrol from Siliguri, India where petrol costs IRs 66.11 (Rs 105.77) and diesel is available at IRs 49.55 (Rs 79.28). It will then sell petrol and diesel to NOC at Rs 199 and Rs 187 per liter, respectively.
Sources at NOC said 25 tankers loaded in Siliguri will enter Kathmandu soon. They said Khadga have even agreed to pay customs duty of the petroleum products.
Khadka told Republica that NOC has helped Birat Oil to open LC worth Rs 20 million. “Price is not the issue. The need of the hour is to bring petroleum products to the country,” he added.
He also said it is not mandatory for NOC to buy petroleum products supplied by Birat Oil. “The government will take decision on this issue. First let the tankers arrive here,” he added.
Mukunda Ghimire, director of NOC, also said NOC will purchase the fuel supplied by Birat Oil.
