The IOC agreed to supply more fuel to Nepal following the government commitment for the NOC to provide Rs 2.50 billion bail-out fund to finance petroleum import.

The NOC said that it would settle Rs 5 billion credit owed to the IOC on Monday. As of April 15, its unpaid dues to the IOC stand at Rs 9.45 billion.

However, the oil monopoly said that it would take at least another 3-4 days for the market to be stable. Petroleum products have been in short supply in the valley for the past two weeks.

 “We have increased the supply of petrol to 476 kilo litres on Sunday compared to 350kl supplied on normal days,” said Mukunda Ghimire, NOC spokesperson. According to him, similar amount of fuel will be dispatched in the market for the next few days to ease the situation.

Spokesperson for the Finance Ministry Ram Saran Pudasaini said that they were preparing to send a proposal to the Cabinet on releasing Rs 2.5 billion to the NOC. The government will act as a guarantor for the loans that will be disbursed from the Employees Provident Fund and the Citizen Investment Trust.

The release of the amount will raise NOC’s loan to the government and different banks and financial institutions to a record Rs 36.66 billion.  

Meanwhile, Nepal Petroleum Dealers’ National Association said it would take at least four to five days for the market to be normal.

Lilendra Pradhan, president of the association said that gas stations in the valley have run out of fuel within 2-3 hours of opening due to panic buying.

“Despite the increase in supply, long queues in front of pumps are still a common sight,” he said.