Kathmandu, September 5:

The crisis over petroleum supply in the Kathmandu valley continues to worsen, as import has been halted due to an indefinite strike called by tanker drivers for last three days.

As a result, long queues of cars and motorcycles were seen at most of the public gas stations in the valley today. Nepal Oil Corporation (NOC) has also tightened supply from its Thankot depot, as it has not received any petroleum product from Monday, after Nepal Tanker Drivers’ Union went on an indefinite strike, halting all imports.

The drivers’ strike has aggravated the crisis and NOC has been compelled to tighten supply, said Keshav Raj Joshi, chief at NOC Thankot depot, adding that NOC today released only half of the normal demand of petrol. It today released 84,000 litres of petrol, 120,000 litres diesel and 143,000 litres of kerosene for the Valley.

Out of 114 petrol pumps in the Valley, NOC has released petrol mostly to either government-run pumps or public ones including police, army and Sajha. Only three private pumps were lucky to get petrol today.

“The current stock of petrol is at a record low level which would only meet demand for about two more days. A serious crisis is inevitable, if proper action is not taken,” Joshi said.

NOC has already cut supply in the range of 45 to 50 per cent due to its failure to clear dues with its sole supplier, Indian Oil Corporation (IOC), which currently stands at Rs 3.2 billion.

NOC is facing an acute fund crunch, while it has been incurring losses for the last five

years. Accumulated loans to be repaid by the corporation have already crossed Rs 11 billion, said Iccha Bikram Thapa, spokesperson at NOC. “IOC is supplying petroleum products on the basis of money we pay. Since we have not been able to pay the needed amount, supply cut is obvious,” he added.

Due to huge price disparity, NOC claims that it has been suffering a monthly loss of more than Rs 310 million and more than half of its loss comes from LPG. Since price disparity in LPG is as high as Rs 277 per cylinder, NOC is losing over Rs 160 million a month, the NOC official said.

NOC gets new boss

KATHMANDU: The ministry of industry, commerce and supplies (MoICS) today appointed Digamber Jha as new general manager at the ‘financially bankrupt’ Nepal Oil Corporation. The ministerial level meeting decided to appoint Jha as the new boss at NOC, replacing Vishwanath Goyel. Prior to assuming the new post, Jha was consultant with the Melamchi Drinking Water Supply Project. — HNS