Technical losses in fuel transport

Petroleum dealers withdraw protest

Published On: July 4, 2017 01:40 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 4: Nepal Petroleum Dealers Association (NPDA), which had announced to halt sale of petroleum products starting July 4 demanding rise in compensation for technical loss, has withdrawn its protest.

Officials of the association say that they withdrew all protest programs after Nepal Oil Corporation (NOC) assured them that it would take needful initiatives to address their demands. 

NOC has formed a team under the leadership of Bishwa Babu Pudasaini, the director general of Nepal Bureau of Standards and Metrology (NBSM), to study the demands placed by petroleum dealers. NOC officials say that the state-owned petroleum monopolist would address demands of dealers based on the recommendation made by the team.

Achyut Bahadur Khadka, president of Bagmati Petroleum Dealers Association, said that the petroleum dealers withdrew the protest after NOC assured them that their demands will be addressed by mid-July. "NOC has sent us a commitment letter, stating that it would address our demands by mid-July," he said, adding, "If our demands are not addressed, we will stop distribution of petroleum products from July 1."

Sitaram Pokhrel, the spokesperson for NOC, said the corporation requested petroleum dealers to withdraw the protest as disruption in distribution of petroleum products will directly hit consumers.

NOC provides compensation for loss of 105 liters per 12,000 liters of petrol. Similarly, it compensates the dealer for loss of 73 liters per 12,000 liters of diesel. 

Petroleum traders, however, have been saying that NOC should provide compensation for 252 liters of petrol and 180 liters of diesel per 12,000 liters, respectively.

Earlier in April, a joint study team of NOC, NPDA, and Nepal Bureau of Standards and Metrology had found that tankers were supplying 84 to 99 liters less fuel per chamber (3,000 liters). 

Petroleum tankers have four to five chambers having capacity of 3,000 liters each. Petroleum tankers ferrying fuel from NOC's depot in Thankot to different dealers in Kathmandu Valley have been reporting such a huge technical loss. 

Sources say NPDA is holding a meeting on Saturday to discuss about its protest program.

Meanwhile, NOC on Sunday made adjustment to price of petroleum products after fuel prices fell in the international market. The state-owned oil monopoly reduced the prices of petrol, kerosene and diesel by Rs 2 per liter each. Similarly, it has reduced price of liquefied petroleum gas (LPG) by Rs 25 per cylinder, and air turbine fuel for domestic) and international carriers by Rs 2 per liter and Rs 4 per liter, respectively.

With the fresh adjustment, petrol will be retailed at Rs 98 per liter, while kerosene and diesel will cost Rs 74 per liter each. Similarly, LPG will be available for Rs 1,350 per cylinder.

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