Nepal Oil Corporation (NOC) has said its sole supplier Indian Oil Corporation (IOC) has pledged to increase petroleum supply from Monday.

The IOC is currently supplying just 10 percent of the normal supply, according to NOC. NOC Spokesperson Deepak Baral confirmed that IOC officials, over the phone, expressed commitment to hike the supply to 25 percent of the normal supply. During normal times, NOC receives 350 tankers of petrel per day.

Due to the short-supply of fuel as a result of India’s unofficial trade embargo on Nepal, vehicular movements have come down drastically in the last three weeks. NOC has not been selling oil to private vehicles, while public vehicles are getting fuel in limited quantities.

The shortage, which has come just ahead of the annual festive travel rush, has created a panic among the people.

According to NOC, 42 tankers, including 12 cooking gas bullets, entered Nepal on Sunday through the Nepalgunj-Rupaidhia customs point. Similarly, 33 tankers are reported to have received petroleum loads at IOC depots, including eight tankers in Siliguri and 25 in Gonda.

As per its plan to facilitate the people leaving the valley to their homes to celebrate the upcoming festivals, NOC has also increased the supply of diesel to public vehicles. The corporation distributed 363KL of diesel on Sunday from the usual 250KL after the blockade.

NOC is also distributing petrol to the private vehicles on Tuesday. Baral said they plan to sell 600KL of petrol on the day.

12 firms submit bids to supply oil

A total of 12 companies have submitted bids to supply petroleum products to Nepal Oil Corporation (NOC).

The three-day deadline for the expression of interest (EoI) invited by the state-owned oil monopoly ended on Sunday. It has asked interested firms to supply 200KL each of diesel, kerosene and aviation fuel, and 100KL of petrol and 100 metric tonnes of liquefied petroleum gas (LPG).

With Indian Oil Corporation (IOC) restricting fuel supply for the last three weeks, NOC was forced to look for alternatives to address the demand during the upcoming festivals when the Kathmandu valley sees mass departure of the people to their hometowns.

The NOC Spokesperson Deepak Baral said the bidding firms included both domestic and international. “A number of Indian firms are also expected to have submitted the bids,” he said.

Interestingly, even IOC had emailed the NOC expressing its interest to supply fuel under the EoI, an NOC official said. “We are not sure whether the IOC has submitted the bid.”

Baral said the NOC would open the closed bids on Monday by forming a committee. “The committee will then shortlist the supplier,” he said.

Despite having a business contract, IOC has not been providing adequate petroleum to NOC, citing security concerns over the Tarai unrest. The government has, however, maintained it is ready to provide security to the vehicles on the Nepali territory.