House panel directs petroleum dealers not to halt petroleum supply

Published On: August 11, 2017 03:15 AM NPT

KATHMANDU, August 11: A sub-committee of the parliament's Consumer Welfare Relations Committee (CWRC) has directed Nepal Petroleum Dealers' Association to immediately resume fuel supply.

The sub-committee has also told the association not to halt supply of the essential commodity until it comes up with a conclusion in the case within 15 days.

The association stopped receiving petroleum supply from Thursday, seeking additional compensation for technical loss. The association's decision has already created supply crunch in the market, with queues forming up at refilling pumps.

Subash Chandra Thakuri, chairperson of the sub-committee, told Republica that the house panel decided to make final decision within 15 days after making comprehensive study of the issue.

Earlier, a study team led by Deepak Baral, a director of Nepal Oil Corporation (NOC), had suggested the state-owned petroleum monopoly to increase compensation for technical loss, but without any justification. “We found the report prepared by the study committee incomplete as the data of technical losses were not collected from all places. Also, a representative from Nepal Bureau of Standards and Metrology (NBSM), Tilak KC, has not not signed the report,” added Thakuri. 

Bhuwan Niraula, a representative of consumers in the Baral-led committee, said that the study committee concluded that losses are marginal at some places. “But it cannot be generalized. Technical loss might be negligible in Tarai, while it could be higher in the hilly region,” he added.

The study committee, however, has not arrived at any comprehensive conclusion. 
Currently, NOC is providing compensation for technical loss of 35.2 liter per 4,000 liters of petrol and 24 liters per 4,000 liters of diesel. The association has been lobbying for more compensation for losses owing to temperature and stock losses.

Despite sub-committee's direction, the association has not agreed to resume supply, according to Prem Kumar Rai, secretary of the Ministry of Supplies, who was attending NOC baoard meeting when this story was filed.

Leave A Comment