NOC enforcing advanced tracking system to check leakage during distribution of petroleum products

Published On: April 14, 2021 06:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 14: Nepal Oil Corporation (NOC) is implementing the enterprise resource planning (ERP) in its working mechanism from Friday. This is aimed at ending the existing leakage in the distribution of petroleum products.

NOC Spokesperson Binit Mani Upadhyaya said the ERP system incorporates the electronic cargo tracking module to check the leakages and possible adulteration in petroleum products during the distribution process. “The GPS based system will help the corporation to monitor the fuels during the load and unload process at the concerned depots,” Upadhyaya said.  

An ERP software system integrates planning, purchasing inventory, sales, marketing, finance, and human resources, among other things. In this regard, the system could conduct real time tracking of the supply distribution, loading tankers at the Indian Oil Corporation’s depots in India till it reaches the gasoline stations in Nepal.

The NOC has been considering a ‘technical loss’ for transporters while distributing the fuels from India to the gasoline stations. Under the provision, the state-owned enterprise has allowed the transporters to deduct 21 liters of petrol and 15 liters each of kerosene and diesel on every 4,000 liters of the supplied fuels. 

However, many unscrupulous petroleum transporters have been found claiming losses more than the fixed threshold set by the NOC to take undue benefit. In addition to this, the petroleum suppliers have also been found involved in theft and pilferage of petroleum products and adulteration time and again.

A study conducted by a government’s probe team three years ago also found that fuel dealers ‘highly inflate’ the claim of technical loss during transportation of petroleum products. The dealers were found making claims of technical loss of up to 99 liters on every 4,000 liters of fuels.

Petroleum dealers, however, are opposed to the new measure introduced by the NOC. Issuing a press statement recently, Nepal Petroleum Dealers National Association has asked concerned traders not to support the ERP system of the NOC.

Officials said NOC has invested Rs 250 million to develop the software to implement the ERP system. 


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