Birat Petroleum to get nod to sell petrol from Nepal Oil Corporation

Kathmandu March 8- At a time when the situation is gradually normalising along with increased supply from Indian Oil Corporation, Nepal Oil Corporation (NOC) — the state-owned petroleum company — has shown interest to allow privately-owned Birat Petroleum Pvt Ltd (BPPL) to sell petrol through its dealers. This issue has come into light as NOC, in response to the query put forth by the Department of Supply Management and Consumer Protection (DoSMCP), is planning to recommend giving consent to BPPL to sell petrol.

The BPPL had sought permission from the government to sell petrol at a price which is 51 per cent higher than the market rate. Initially, the company had sought permission to sell 132,000 litres of petrol at Rs 155 per litre. However, a few days later, the company revised down the price to Rs 150 per litre, according to DoSMCP. Currently, NOC has been selling petrol at Rs 99 per litre in the domestic market.

According to a high-level source at the NOC, the state-owned company has prepared its response to the DoSMCP citing it would be rational to allow BPPL to sell petrol in the Valley as a supportive measure to NOC’s effort in maintaining smooth supply. Even as it has been nearly a month since the supply of fuel from India resumed through all trading routes, NOC has completely failed to maintain smooth supply of fuel in the Valley, which constitutes one-third of the country’s total fuel demand.