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Nepal faces petroleum shortages
Publication Date : 24-06-2014
Fuel shortages have reappeared in the valley, resulting in long queues at petrol stations.
The Kathmandu valley has been receiving just 240kl petrol daily for the last few days against the demand of 450kl, according to Nepal Petroleum Dealers’ National Association (NPDNA).
Nepal Oil Corporation spokesperson Mukunda Ghimire said most of refueling stations ran out of fuel due to the public holidays on Saturday and Sunday.
He said the corporation released 462kl petrol and 560kl diesel on Monday, and said the market will stabilise soon.
Ghimire said disruption in consignment of petroleum products from India’s Raxaul depot for the last few days also affected imports.
Lilendra Prasad Pradhan, president of NPDNA, said the oil monopoly has slashed petroleum imports deliberately to reduce its ballooning losses.
“There is no any reason that the supply should be interrupted at present.”
As per the tariff sent by the Indian Oil Corporation on June 16, the monthly projected loss of the state-owned oil monopoly stands at 128.5 million Nepalese rupees (US$1.33 million), down from 1.85 billion Nepalese rupees ($19.1 million) in January.