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Diesel in short supply as NOC cuts deliveries
Gasoline stations in the Kathmandu Valley have run short of diesel as Nepal Oil Corporation (NOC) has reduced deliveries.Gasoline stations in the Kathmandu Valley have run short of diesel as Nepal Oil Corporation (NOC) has reduced deliveries. The state-owned oil monopoly has
been supplying only 350-400 kilolitres of diesel daily compared to the requirement of 500 kilolitres.
Gasoline pumps said that they had been unable to supply fuel to private motorists as per demand due to inadequate deliveries from NOC. “We sold diesel only once in the last two weeks due to insufficient stock,” said Raju Magar, an attendant at the Valley Fuel Centre, Gyaneshwor.
According to fuel dealers, they have been instructed by NOC to sell diesel only to those producing its recommendation letter. They blamed the diesel shortage on NOC’s decision to sell fuel in jerry cans in large quantities.
Bhumi Raj Chaudhary, an official at Three Brothers Oil Stores, Baneshwor, said the diesel shortage had emerged in the last few weeks. “We have to sell diesel only to those who produce a recommendation letter from NOC. As a result, owners of private vehicles have to return empty-handed,” he said.
The diesel shortage has created havoc for public transportation companies.
Lilendra Prasad Pradhan, president of the Nepal Petroleum Dealers’ Association, said the scarcity emerged after NOC tightened supplies. On Monday, the corporation distributed only 396 kilolitres of diesel from 78 gasoline stations in the valley and adjoining districts. According to Pradhan, the daily diesel requirement amounts to at least 600 kilolitres. Notwithstanding the serpentine queues in front of gasoline stations, NOC claimed that there was no shortage.
Acting Deputy Managing Director Sushil Bhattarai, said that there was a small shortfall in supply as NOC’s diesel tankers had been redeployed to transport petrol.
“In order to ease the acute shortage of petrol, we have used a number of diesel tankers to transport petrol,” said Bhattarai.
As per NOC, it has been supplying more than 500 kilolitres of petrol daily compared to the normal requirement of 350 kilolitres. “As the petrol supply has returned to normal, we will be shifting the focus to increasing the diesel supply,” said Bhattarai.
According to him, NOC imported 90,000 kilolitres of diesel during the period mid-February to mid-March while the usual monthly demand is 75,000 kilolitres.
“This is an all-time high shipment of diesel by NOC,” said Bhattarai, adding that they issued 28,500 kilolitres of petrol during the period compared to the average demand of 30,000 kilolitres.