The government on Monday removed restrictions on the distribution of petroleum products with immediate effect.

Henceforth, motorists will get any amount of fuel, while households can buy fully filled cooking gas cylinders.

Under the quota system imposed for the last five months after India imposed a trade embargo, Nepal Oil Corporation (NOC) had been distributing five litres of petrol to two-wheelers and 15 litres to four-wheelers at a time. And, in its bid to distribute Liquefied Petroleum Gas (LPG) to more consumers, the government had introduced the half-filled cylinder system.

Given Indian Oil Corporation (IOC) is yet to supply the required amount of fuel, there are doubts whether the government would be able to normalise the fuel distribution. “After the restrictions at the Birgunj border point were lifted on February 5, IOC’s Raxaul depot has been supplying just 70 percent of the demand,” said Supply Minister Ganesh Man Pun at a press meet here on Monday. “As fuel imports have not yet improved, we have been talking to IOC officials to boost the supply.”

Pun said the removal of the quota system was mainly aimed at discouraging motorists to hoard fuel. “If motorists get a full tank of fuel, chances of hoarding will be minimised,” he said, adding it would take some time for the fuel distribution to normalise.

NOC has claimed it has increased fuel distribution in the Valley significantly. The valley has been receiving 450kl of petrol from 350kl earlier. Likewise, diesel supply has been increased to 500kl from 450kl. Except for petrol pumps that have been booked for misconduct, all others have been receiving fuel, according to NOC.

Amid complaints about rampant black-marketing and hoarding, the ministry has also decided to intensify market monitoring. The government has deployed 172 Staff College trainee officials to monitor markets in the Kathmandu Valley, while special market monitoring squads have been formed in 11 other districts. Pun said the government has also set up a “control room” at NOC for effective distribution of cooking gas. Between mid-January and mid February, the government cross checked 337 business firms, 43 petrol pumps and 12 cooking gas industries. It filed cases against six petrol pumps, while nine business firms were asked to submit clarification and three had been recommended for action. A joint market monitoring was conducted by Nepal Police, Consumers Right activists and NOC officials.  

Meanwhile, the ministry said it has directed NOC to conduct a study to set up new fuel depots in “areas of strategic importance”, including the mid-hill highway.

IOC dispatches 54 LPG bullets

KATHMANDU: Nepal Oil Corporation (NOC) said its sole supplier Indian Oil Corporation (IOC) dispatched 54 LPG bullets on Monday — the largest LPG consignment in the last five months. The consignment had dropped to 30 percent of the demand immediately after India’s trade embargo. NOC Director Mukunda Ghimire said they had been receiving 35-40 bullets per day until last week. “We have been informed the supply of LPG will be increased further in the coming days,” he said. The daily demand for cooking gas in the country stands at 55 bullets.