Govt reiterates to build petroleum storage capacity for 90 days, a plan that has remained in limbo for years

Published On: May 29, 2021 06:04 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 29: The government this year too has reiterated its same old commitment to expand the petroleum storage capacity of the country so that it can meet the national demand for at least three months.

Finance Minister Bishnu Prasad Poudel through the budget 2021/22 has announced plans to install the necessary infrastructure that has been a matter of talk for years.

Currently, Nepal Oil Corporation (NOC), the sole supplier of petroleum products in Nepal, has storage facilities at 10 locations. These storage plants can keep a stock of around 72,000 kl of petrol, diesel, kerosene and aviation fuel. The quantity is sufficient to meet the country’s demand for only 20 days.

In 2017, NOC had earmarked Rs 117 billion from its annual profits to install new fuel storage plants. Following the controversial land deal issue with the then Managing Director of NOC Gopal Bahadur Khadka, the NOC’s plan has remained in limbo. Khadka was accused of misappropriating funds in the name of land purchase for building storage facilities.

Leave A Comment