NOC mulls bidding to reduce LPG transport cost

KATHMANDU, Oct 8: Nepal Oil Corporation (NOC) is preparing to adopt open competition to select transporters to ferry Liquified Petroleum Gas (LPG) from India in an effort to reduce transportation cost. NOC so far had been providing transportation fare to private bottling plants without any bidding involved.



Addressing a program organized by Gas Dealers´ Federation on Friday, Digamber Jha, managing director of NOC criticized the gas companies for making huge profit by overlooking their responsibilities.[break]

 

“We had recently requested the gas companies to reduce the price of cooking gas by Rs 40 per cylinder keeping in view the Dashain festival. But they ignored our call, Jha said.



He further added that NOC will soon call bidding among aspirant transporters to reduce transportation fare as gas companies were collecting exorbitant fare from NOC.



Bottling companies make a profit of about Rs 28 per cylinder on transportation fare. NOC has been giving bottling companies Rs 80.45 per cylinder to transport gas from Barauni in India to Kathmandu. They are also making profit on local transportation, overhead cost and working loss in addition to the profit allowed by NOC.



Speaking on the occasion, Gyaneshwar Aryal, president of the federation, urged NOC to introduce 5kg-cylinder to make LPG gas more accessible to rural people.

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NOC mulls bidding to reduce LPG transport cost