Nepal | March 31, 2020

Panel submits report on fuel loss during transport

Study finds technical loss of 50 litres of petrol and 36 litres of diesel on every 4,000 litres of fuel supply

Sujan Dhungana
Nepal Oil Corporation NOC fuel tankers in Raxaul depot

Nepal Oil Corporation fuel tankers await customs clearance in Raxaul to enter Nepal on Monday, February 08, 2016. Photo: Ram Sarraf/ File

Kathmandu, July 14

The government probe committee has found that petroleum dealers face technical loss of 50 litres of petrol and 36 litres of diesel while transporting every 4,000 litres of these petroleum products from NOC’s depots to their petrol pumps.

The study committee led by Director General of Nepal Bureau of Standards and Metrology Bishwo Babu Pudasaini, which was formed to verify the actual technical loss in fuel during its transport, recently submitted the findings to this effect to the Ministry of Supplies (MoS).

Claiming that they have been incurring loss of around 99 litres on the purchase of every 4,000 litres of petrol or diesel from NOC’s depots, petroleum dealers associated with the Bagmati Petroleum Dealers’ Association had submitted a memorandum to the government in the third week of June seeking a hike in loss commission on fuel.

Moreover, 300 fuel stations affiliated to this association had threatened to halt fuel supply from July 4 with the demand to increase fuel loss compensation to at least 65 litres in case of diesel and 85 litres in case of petrol on every 4,000 litres of petrol or diesel. Currently, Nepal Oil Corporation (NOC) has been allowing deduction of 35 litres of petrol and 26 litres of diesel to petroleum dealers on every 4,000 litres of fuel supplied by NOC’s oil depots.

However, the probe committee report has clearly shown that the actual amount of technical loss in fuel is much lower than what dealers had claimed.

“As a result of the rise in mercury, we have found that dealers have been bearing a loss amounting to 50 litres in petrol and 36 litres in diesel on an average while transporting 4,000 litres of fuel from NOC’s depot to petrol pumps,” a member of the probe committee informed The Himalayan Times seeking anonymity.

However, NOC Spokesperson Sitaram Pokharel said that NOC management has not received the report yet.

“It has been submitted to MoS by the committee and will be tabled at the NOC board meeting soon,” Pokharel said, adding that NOC will implement new fuel compensation rate for petroleum dealers after the report is endorsed by the NOC board.

Meanwhile, petroleum dealers have said the report findings would not be acceptable to them if it has recommended the fuel compensation rate of less than 65 litres on supply of 4,000 litres. “We have not been informed officially about the report of the probe committee. Our reaction will be based on the final report,” said Achyut Khadka, president of Bagmati Petroleum Dealers’ Association.

A version of this article appears in print on July 15, 2017 of The Himalayan Times.

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