“How could the ministry grant a license for crude imports and production of petroleum products in the country without formulating appropriate laws and policy? We smell a rat in the deal,” said Mukunda Neupane, general secretary of the association in the region.
The dealers, who are affiliated to Nepal Oil Corporation (NOC), have also demanded that the government test the quality of diesel Koshi Petrochemicals is supplying to industrial plants.
“The state must ascertain that its product matches the standard product specification for diesel,” Neupane told myrepublica.com.
They have also threatened to launch a strike if the government does not fulfill their demand for investigations within 15 days.
Dealers mainly flayed the MoI step after the company started fixed the price of its diesel Rs 1 cheaper per liter than that supplied by NOC.
Koshi Petrochemicals is based in Nemuwa of Morang district and had received a license from DOI on May 20, 2009, securing permission to import crude oil and produce diesel, furnace oil and mineral turpentine oil in the country.
Interestingly, the company started selling diesel from May 22, just two days after getting its license.
“This whole saga appears sinister. Hence, we want a deeper investigation of the case,” said Neupane.
The company, on the other hand, says it is sourcing crude from the Gulf countries. “We are presently producing 30,000 liters of diesel and refining the crude at our own refinery,” said Subodh Koirala, promoter of the company.
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