The state-run fuel monopoly had cut imports by sharp 60 percent in a bid to curtail its loss, mainly after the government refused its proposal to hike fuel prices. The news prompted consumers to queue vehicles at petrol pumps, even though NOC continued to pump out normal volume of fuel. [break]
Consumer rights organizations had condemned NOC for troubling consumers for its differences with the government over the price adjustment and urged it to roll back the strategy immediately.
“We are importing as much as 1,600 kiloliters of fuel from Raxaul, up from previous days´ imports of 1,000 KL,” NOC Spokesperson Mukunda Dhungel told myrepublica.com. He further added that NOC would start receiving the regular 2,300 KL of fuel from Raxaul from Friday.
As the import will replenish NOC´s stock, which it used over this week to maintain supplies, Dhungel stated there was no need for consumers to panic. “We have enough stock and are pumping out adequate fuel in the market even now. There is no need for consumers to buy extra fuel for maintaining stock,” he said.
Records show that NOC distributed over 260 KL of petrol in the Kathmandu Valley on Wednesday. It further pumped out about 400 KL of diesel in the market. The supplies were equal to what consumers in the Valley take on any normal day.
However, the supply has failed to reduce queues at fuel stations as consumers are buying extra fuel, fearing scarcity in the future.
“People have no confidence in NOC´s supply capacity. That is why news of slowed import led to rise in demands. NOC, on the other hand, has continued to supply regular volume. How will this meet demand?” wondered Saroj Pandey, president of Nepal Petroleum Dealers Association.
Dues to go down
As NOC took lesser fuel than what it paid to the Indian Oil Corporation, officials said the strategy would help NOC lower its outstanding dues with the sole fuel supplier in the new month.
“We are yet to get the reconciled figure from IOC. But our due, which stands at around Rs 640 million, will surely go down,” Dhungel said. He further said that NOC was paying Rs 1.12 billion to IOC on July 2 to ensure regular imports for the next month.
´Price adjustment necessary´
Irrespective of the latest roll back of strategy, NOC officials said the government must adjust its domestic fuel prices in line with the international trend.
NOC is currently suffering a loss of about Re 1 per liter of diesel and Rs 178 per cylinder (14.2 kg) of liquefied petroleum gas (LPG). This is estimated to inflict a loss of some Rs 30 million to NOC in June.
With international prices inching up, which will jack up prices of diesel and petrol, Dhungel said the government should act prudently now. “Or else, it will sharply deteriorate NOC´s import capacity, ultimately leading to scarcity of fuel in the market,” he added.
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