NOC-dealers dispute induces new fuel shortage

  • 17/06/2008

  • Kathmandu Post (Nepal)

- Consumers were hit by another fuel shortage since Sunday after as petroleum dealers halted distribution because of a dispute with the Nepal Oil Corporation (NOC). NOC officials said that an agreement had been reached Monday evening, and the dealers would resume distribution Tuesday. The dealers said they stopped selling fuel as NOC had forced upon them a new set of directives related to retail prices of fuel, extent of technical leakage, and transportation cost. The petrol scarcity, which had been running for months, had faded away after a price revision last week. But consumers who had thought they would finally be able to refuel easily following the price rise were left confused and disappointed. They had to return empty handed, as all pumps were closed. "Earlier, enough fuel was not supplied, citing huge losses of NOC, and pointing out the need to raise the price. But, even after the price, we are unable to buy fuel,' said a taxi driver, coming to a petrol pump at New Baneshwor. "I do not have fuel even to reach the garage and I am stuck here.' The sole supplier, NOC had directed all its depots to supply dealers only after getting the pumps to sign a 'commitment paper' entailing its directives. Its directive came after last week's price rise. "In the talks held with the dealers this evening we agreed to roll back our directives. And, fuel distribution will resume from Tuesday,' Mukunda Prasad Dhungel, spokesperson for NOC told the Post Monday. Shiva Prasad Ghimire, president of Nepal Petroleum Dealers Association, said the dealers were not ready to accept the NOC directives. "However, we are flexible on the issues of technical leakage and working losses,' he said. "We will table all directives of NOC at a meeting of petroleum dealers set on Wednesday at Narayanghat and make our stand on the basis of the conclusion,' said Linendra Pradhan, treasurer of the association. The corporation and dealers are also stuck in a dispute over transportation cost as well. "Our demand is that the transportation charge also should go up, with rise in diesel price,' said Pradhan. "We are increasing the charge by nine percent to Rs 245 per kiloliter.' The association had set prices higher than the corporation. Its retail price of petrol is Rs100.5 a liter, diesel Rs 70.20 and kerosene Rs 65.30. Posted on: 2008-06-16 19:44:57 (Server Time)