Kathmandu Nepal: Nepal has been suffering from the crisis of petrol from past few years. Due to mismanagement, lack of proper system and political interference Nepal Oil Corporation (NOC) the prime body of government has been an example of worst management practice. Every now and then people have to suffer the crisis with a situation of lack of understanding and confidence upon the government and other relevant organization. The joke of the day is the same corporation issues bonuses to the staff showing profit but every quarter when it comes to paying its debts it always complains regarding the fluctuation of the petrol prices internationally. The most amazing thing is a lot of issue have been raising in and against the price fluctuation and creating a feasible mechanism to standardize the local price of petrol with the international market. But every time the price shoots up internationally, the local price of petrol in Nepal goes up but when the international prices goes down then NOC fails to validate its effectiveness saying it has been suffering losses at different levels.

Currently, NOC suffers a loss of around Rs 19 on a liter of diesel, Rs 7 on a liter of kerosene and around Rs 339 per cylinder (14.2 kgs) of LPG. Its outstanding loans total around Rs 20 billion.

If you look at the international scenario the petrol price in Nepal is around USD 1. 30 per liter where as in India the same petrol price cost at USD 0.98. One can easily know what’s happening from the data.
With the growing crisis the Government of Nepal (GON) has recently directed the Citizen Investment Trust (CIT) to release Rs 1 billion to forfeit the previous due of NOC, which failed to supply adequate quantity of petroleum products in the country in the past few days. The CIT on Sunday said “We have arranged the payment of Rs 700 million on Monday and remaining amount the following day.”

Similarly speaking at an interaction in the capital one of the spokesperson of GON said, “The current fuel crisis will be resolved soon by waiving the Value Added Tax in diesel and gas the crisis of petroleum products has been witnessed due to the delay in the release of loans from the Investment Board and Provident Fund as these institutions have been demanding some 12 percent interest which is not favorable for Nepal Oil Corporation. The government is also preparing to forge new fuel agreement between Nepal Oil Corporation and Indian Oil Corporation to ease the petroleum crisis.”
According to NOC, it distributed 426,000 liters of petrol, 626,000 liters of diesel and 108,000 liters of kerosene to different petrol pumps in the capital on Sunday. Similarly, NOC dispatched 60,000 liters of petrol, 92,000 liters of diesel and 36,000 liters of kerosene from Amlekhgunj depot for different pumps in the Kathmandu valley. With crunches of cash and finances the problems of short-supply of petroleum products will be averted at least for two months with the short term loans but the problem stalks with no answer .

Date: 1 Jan 2012
Location: Indrayani Petrol pump, Sanepa
Me: I heard there is enough petrol released by the NOC
Representative of Indranyani: Yes, the petrol has been coming regularly but you never
Me: Why is your pump giving petrol in bulk to the those cars and truck with smaller tanker inside
Representative of Indranyani: They are coupon system they are our regular clients and we need to give them
Me: We are also your regular client and staying in line for more than 2 hrs you give us 4.7 liters and for them you are giving openly
Representative of Indranyani: They need it, they have their industries to run. They have their big machine to run
Me: what the hell even we have our priorities what about us?
Representative of Indranyani: Go and talk to the Government Mister

The situation has been worst where petrol pumps are manipulating the situation according to their will and time. To make things worst they have started to use police and local thugs where the normal public are threatened and shown power, if raise voice. They have set up a channel for the petrol in small containers which has been prohibited by the GON and still the police watch it closely with no interference. The funny situation is people have money in their pockets and still they don’t have petrol what can be more less demeaning than to expect something from a government that cannot even feasibly allocated the most usable commodity to the public ….

Petrol the fight of the public is not just a question for the Government of Nepal but it’s a question to the normal public for their pubic rights that till when will we all keep our silence for what must have been done by the leaders. Are we that vulnerable that we need to be told what to be done ……………

A question for all………………….


Shreedeep Rajamajhi