Nepal | August 08, 2020

NOC plans to import additional 10,000 tonnes of LPG in July

Himalayan News Service
Share Now:
Nepal Oil Corporation (NOC)

Nepal Oil Corporation. Photo: THT file

Kathmandu, June 26

The country will import an additional 10,000 tonnes of liquefied petroleum gas (LPG) in July as Indian Oil Corporation (IOC) has pledged to conclude all the procedural stipulations within this week to provide the additional quantity from Paradeep refinery of Odisha state.

IOC has promised additional supply to Nepal to make up for the shortfall caused during the disruptions in supply lines from India that has caused a prolonged crisis. The country is entirely reliant on the southern neighbour for fuel import.

Nepal Oil Corporation (NOC) has said that additional quantity will be imported through regular process by LPG bottlers. Mukunda Prasad Ghimire, spokesman of NOC, informed that product delivery order (PDO) to gas bottlers will be issued from this week after it receives a letter to that effect from IOC. “Most probably we will able to send gas bullets to receive load from Paradeep from next week,” said Ghimire.

The additional quantity from India is expected to end the erratic distribution of the cooking fuel because consumers are still compelled to keep their cylinders in queue to get LPG. Demand for cooking gas always increases during the festive season and peaks during winter season, as per Ghimire.

“That is why NOC needs to increase the supply in the domestic market before the onset of the festive season.”

However, LPG bottlers have been reluctant to import cooking gas from Paradeep, which is 1,039 km from Birgunj. They have sought compensation from NOC because transport fare would rise while importing LPG from Paradeep. They claim that the existing price of cooking gas will not cover the cost incurred while importing the commodity from Paradeep. “NOC should either compensate gas bottlers or increase the market price of cooking gas slightly for a certain period,” said Shiva Prasad Ghimire, president of Nepal LP Gas Industry Association (NLPGIA). “Without any concrete decision from NOC, we will refuse to accept the PDO.”

Currently, bottlers have been importing cooking gas from Barauni, Haldia and Mathura. Ghimire, who heads the
NLPGIA, said a bullet can transport LPG only two times in a month from Paradeep. “We will need to lease more bullets to transport cooking fuel from Paradeep,” he said.

NOC Spokesman Ghimire has said that NLPGIA’s claim is false because the price of LPG is slightly lower in Paradeep than the price of LPG that bottlers have been receiving from Haldia. “The difference in the price of cooking gas in Paradeep and Haldia will cover the transportation cost,” according to him. The distance to Paradeep from Birgunj is 200 km more than to Haldia.

NOC has said that it has not yet spoken to bottlers regarding importing cooking gas from Paradeep because IOC has yet to clear some procedures including route permit, among others. “Once we receive a letter from IOC to dispatch our gas bullets, we will invite bottlers and hold discussions on it,” said Ghimire.

Currently, the country consumes around 27,000 tonnes of cooking gas every month but it goes up to 30,000 tonnes during the festive season and in winter. As per NOC, IOC’s refineries, which are allowed to dispatch load to Nepal are not able to increase supply of above 30,000 tonnes in a month. “We have to talk to IOC for regular supply from other refineries as well because demand of cooking gas has been surging by 13 per cent every year,” according to NOC.


A version of this article appears in print on June 27, 2016 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Community spread feared in Siraha

Siraha, August 6 The spread of COVID-19 in the community has caused terror in Siraha of late. Just yesterday, four persons involved in different occupations tested positive for the virus here, according to District Health Office. Two of the four are health professionals of a polyclinic; one Read More...

VTM crunch hits Banke

Nepalgunj, August 6 The shortage of Viral Transport Medium used for collecting and transporting swab samples has hit the health offices in Banke. The local levels bought the VTMs and offered them to health offices as they did not have it. Mayor of Nepalgunj sub-metropolis Dhawal Shamsher Ra Read More...

MoFAGA

Environmental study procedure issued

Kathmandu, August 6 The government has developed ‘Procedure for Concise Environmental Study and Initial Environmental Examination-2020’ to make CES and IEE systematic and effective. The procedure is expected to aid in implementation and monitoring of development projects to be operated und Read More...

House sealed after coronavirus claims man

Rajbiraj, August 6 A house at Rupani Rural Municipality was sealed after a person died due to COVID-19 in Saptari today. Bindeshwor Sah, 45, of the rural municipality died when he was taken to Dharan-based BP Koirala Institute of Health Sciences on Tuesday. Sah’s final rites were halted afte Read More...

Media face hard times in Chitwan

Chitwan, August 6 With economic activities down in the wake of the COVID-19 menace, media have been adversely impacted here of late. The advertisement market has declined so drastically that media hardly get anything by way of revenue. This has resulted in the media industry dwindling. Four Read More...

Dhangadi sub-metropolis sets up isolation ward

Dhangadi, August 6 Dhangadi Sub-metropolitan City has established an isolation ward for treating COVID infected people in Sudurpaschim Province. The sub-metropolis brought the isolation ward with 80 patients in operation. There are 12 separate beds for females and 68 for males. Similarl Read More...

Trump issues bans on China's TikTok, WeChat, stoking tension with Beijing

WASHINGTON: US President Donald Trump on Thursday unveiled sweeping bans on US transactions with China's ByteDance, owner of video-sharing app TikTok, and Tencent, operator of messenger app WeChat, in a major escalation of tensions with Beijing. The executive orders, which go into effect in 4 Read More...

Nuwakot issues prohibitory order effective from today

TRISHULI: Nuwakot authorities have decided to enforce a prohibitory order in the district amid the heightening risk of coronavirus infection. People's mobility and public service delivery have been heavily cut down in all local levels of the district. A meeting of the Crisis Management Centre Read More...