The Eastern Region Office of Nepal Oil Corporation (NOC) has increased scrutiny of refueling stations located in the eastern Tarai suspected of smuggling to neighboring cities in India. Price of diesel is Rs 20 cheaper per litre in Nepal compared to India as well as price of petrol being Rs 13 cheaper per litre in Nepal.

The Indian government increased the price of diesel and petrol by Rs 5 per litre last week. The NOC has increased focus over petrol pumps situated in Morang, Sunsari, Jhapa and Shaptari. The NOC, hasn’t found any instances of smuggling till date, according to Bhanubhakta Khanal, NOCs Regional Manager. Khanal informed the Post that scrutiny had been intensified with a motive of discouraging such practices which might arise in the near future.

NOC has also tightened distribution of diesel and petrol in the region. The office normally supplies around 800 kilolitres of diesel and 250 kiloliters of petrol on an average each day. The amount has now dropped to around 600 kilometers and 150 kilometers per day, for diesel and petrol respectively.

Following the price hike of diesel and petrol in India, vehicles entering Nepali territory would fill up their tanks and return to India. Nepal and India share an open border, allowing free passage of vehicles.

The NOC now has directed refueling stations to control fuel distribution. A truck is allowed to refill 50 liter of diesel as per the new arrangement made by NOC.

Storage of petroleum in barrel has been discouraged as well. A month ago, NOCs regional office had helped refueling stations in the Indian side by distributing an abundant amount of petroleum.