Kathmandu, December 24

In a bid to clamp down on theft of petroleum products in the country, the government is introducing Petroleum Transportation Bylaw with strict penalty on anyone found involved in such illicit activities.

The final draft of the bylaw, which is expected to be endorsed by the next board meeting of Nepal Oil Corporation (NOC), has a provision of a fine of up to five times the worth of stolen petroleum products for transporters and government officials found to be involved in stealing petroleum products. Moreover, individuals involved in such activities could face suspension from duty and/or even imprisonment. The suspension period and jail time would be determined by the NOC board.

“In a bid to discourage oil pilferage, we have proposed the provisions in the new Petroleum Transportation Bylaw. The board meeting of NOC will pass the bylaw very soon,” an NOC board member told The Himalayan Times, adding that the bylaw will address various issues related to petroleum transportation.

The draft of bylaw also has a provision allowing transporters to use oil tankers with 24-kilolitre capacity to supply petroleum products in the market. Currently, transporters have been using 12-kilolitre and 20-kilolitre oil tankers.

“We welcome the provision of allowing 24-kilolitre tankers to supply oil products as it would slightly reduce transportation cost because more oil could be supplied from a single tanker,” said Bishwo Aryal, general secretary of Nepal Petroleum Transport Entrepreneurs Federation (NPTEF). “However, 24-kilolitre oil tankers would be able to ply on limited routes where roads are wider.”

Moreover, transporters would have to get their oil-carrying tankers checked with the government for their roadworthiness every year after the bylaw comes into force.

Special provisions

• Fine of up to five times the worth of stolen petroleum products
• Suspension from duty and/or imprisonment
• Transporters to be allowed to use oil tankers with 24-kilolitre capacity

As the tankers transporting petroleum products in the country do not have locking system, petroleum theft and leakages on their way from India to Nepal has been a major issue in recent years.

In 2014, Nepal Police had arrested a number of transporters, including some NOC officials, for their involvement in pilferage of 17,000 litres of diesel. Though the government had announced security locking system would be installed in petroleum tankers years ago, NOC has recently initiated the process for the same and recently directed transporters to install security locking system in all oil-carrying tankers within February.

Of late, transporters have started abiding by the instruction and expressed commitment to install such system in all existing petroleum tankers. According to transporters, currently almost 1,800 tankers are used to supply petroleum products in the domestic market.