Suspecting petroleum transporters’ involvement in smuggling, the Ministry of Supplies has intensified checks of fuel tankers at Nepal-India border points and at Nagdhunga, the main entry/exit point to the Kathmandu Valley.

The ministry on Sunday asked Nepal Oil Corporation (NOC) to forward diesel transaction records of the last two months. It also called back Dinesh Kumar Yadav, chief of NOC’s Eastern Region Office in Biratnagar, for his alleged involvement in diesel smuggling.

The ministry’s suspicion was fanned by diesel shortage seen in the Valley despite smooth supply. NOC has said the shortage is because diesel demand in the Valley has almost doubled to 1,500 kilolitres per day, but the ministry thinks there’s no any reason for the demand to rise to such an extent.

Given diesel is cheaper in India by Rs20 per litre than in Nepal, the ministry suspects the fuel imported to Nepal is being smuggled back to India by petroleum transporters in collusion with NOC officials and fuel pumps.

According to ministry officials, it has been reported that many petroleum tankers supplying diesel to the Valley do not completely offload and take back up to two chambers of fuel, in collusion with the pumps, to sell it illegally in border areas.

Normally, a tanker can transport 12 kilolitres of fuel. It has three chambers each with the capacity of 4 kilolitres.

Therefore, it is not because of soaring demand the fuel pumps in the Valley have run dry, the officials said, adding it is because the refuelling stations are not even getting 800 kilolitres—the normal daily fuel demand in the Valley—although there is no any problem in supply.

Supplies Minister Deepak Bohara said the ministry has started checking empty tankers that exit the Valley. “We have set a mechanism to check empty tankers at Nagdhunga,” said Bohara, adding the it will also carry out similar checks at Nepal-India border points.

The ministry has suspected the smuggling is being carried out through border areas in the eastern region. “It has been reported many petrol pumps operating in the Eastern region that used to purchase diesel once in four days are now buying the fuel almost every day,” Bohara said.

The ministry has formed a five-member taskforce led by Spokesperson Surya Prasad Shrestha to monitor outbound tankers. Deputy Inspector General of Nepal Police Hemanta Pal, Deputy Inspector General of Armed Police Force Subodh Adhikari, NOC’s Director Sitaram Pokharel and an under-secretary from Department of Supply Management are other members of the taskforce.

The ministry has also asked NOC to provide details of diesel supplied to petrol pumps across the country. Bohara said they would hand over petroleum dealers suspected of diesel smuggling to Central Investigation Bureau of Nepal Police for further action.