Nepal | June 07, 2020

Transporters resume ATF supply

Himalayan News Service
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Kathmandu, January 29

Agitating transporters, who had been halting the supply of aviation turbine fuel (ATF) since the last four days, have resumed supplying the product from today following a fourpoint agreement with Nepal Oil Corporation (NOC).

Tanker operators transporting ATF in the domestic market had halted the supply of the product seeking amendment in a provision, which makes tanker owners compensate for the technical loss of the petroleum product during transport.

Tanker operators have resumed the supply of fuel following assurances from the NOC that their logical concerns will be examined and addressed soon.

“Tankers have resumed their regular business from today and the supply of ATF is normal,” informed Birendra Goit, spokesperson for NOC.

NOC and tanker operators have primarily reached an agreement to study and review the compensatory provisions on technical loss of petroleum products during transport.

Citing that shrinkage loss during fuel transport is determined by different factors, including temperature, transporters have been demanding that NOC not hold them responsible for such losses.

NOC has been allowing deduction of 45 litres of petrol and 27 litres of diesel on every 4,000 litres of fuel supplied by transporters from different depots to the market as compensation for shrinkage loss. However, in case loss of fuel during transport is above this mark, the corporation makes transporters compensate for it.

Urging transporters not to interrupt the supply of essential goods like petroleum products, NOC has also agreed to address different problems faced by them at fuel loading points.

Pashupati Pathak, an ATF transporter, said that they were compelled to halt ATF supply as NOC had been slapping them with unnecessary fines. “We expect NOC to implement the pact to study and review the compensatory provision soon.”


A version of this article appears in print on January 30, 2020 of The Himalayan Times.


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