Kathmandu, February 6

Nearly four dozen companies have submitted their application at Nepal Oil Corporation (NOC) seeking permissions to operate ‘Model Petroleum Pump’ in the Kathmandu Valley.

The NOC had published a notice on January 4 seeking application from interested parties within a month, to construct such model fuel stations as envisioned by Fuel Distribution Bylaw, 2016. Though Saturday was the given deadline, NOC has extended the application submission period for another 15 days.

“So far, around 45 firms have submitted proposals to set up such model petrol pumps as per the parameters set by Fuel Distribution Bylaw in the Valley,” one NOC source informed The Himalayan Times requesting anonymity. However, some firms have submitted their applications in various NOC regional offices to set up such fuel stations in other parts of the country, which is yet to be tracked at NOC’s headquarters, said the official.

As soon as the new deadline lapses, NOC is expected to form an analysis committee to evaluate all applications and recommend the NOC management to issue licence for the construction of such petrol pumps.

In a bid to standardise fuel distribution system in the country, NOC had amended its Fuel Distribution Bylaw recently and introduced the concept of ‘model petroleum pump’ in Nepal.

The Fuel Distribution Bylaw has set specific standard for construction of such petrol pumps. As per the bylaw, such model fuel station should be constructed on 13 ropanis of land (for Tarai) and on five ropanis of land (for Hilly and Himalayan regions).

Similarly, such fuel stations should have uninterrupted water and power supply, at least two toilets for men, four toilets for women and one for handicapped people, separate sales office and enough parking area, well-managed drainage and well-structured compound wall, high capacity petroleum storage tank, among other parameters.

Similarly, the new bylaw also states that such model fuel stations should introduce fuel purchase through card swapping facility, have ATM outlets, well-managed coffee shops, eateries, vehicle washing and air refill services (for tyres), along with digital monitor that displays quality and quantity of petroleum products. Moreover, such fuel stations would also have to operate round-the-clock.

NOC officials estimate that the cost of construction of such fuel station would be above Rs 10 million.

Lilendra Pradhan, president of Nepal Petroleum Dealers Association (NPDA), said that though the concept of developing such fuel stations is a good one, the government should not hamper businesses of the petroleum dealers who are operating fuel stations in traditional manner. “Government should not make mandatory for the existing fuel stations to adopt such technology as construction of such pumps would put high financial burden on petroleum dealers,” said Pradhan.