Nepal Oil Corporation (NOC) has sought compensation from Indian Oil Corporation (IOC) for heavy financial losses and brand image damage caused by the IOC’s refusal to provide petroleum products to Nepal.
Writing a letter on Friday, NOC approached IOC to pay for the losses caused over the last 15 days. Figures published by the NOC on its site show that NOC enjoyed Rs 870 million in profit in the second half of September and NOC has claimed that amount from the IOC.
NOC has asked the IOC to compensate for the losses mainly in the last two weeks since the Indian company stopped fuel supplies. “We asked the IOC to respect the agreement between the two parties,” said an NOC official.
In a strongly worded letter, the NOC said the 40-year bond between the two organizations had arrived at a crossroads. “IOC, being a multinational company, should not be involved in such unethical and unreasonable business practices, that too with a longtime business partner like the NOC,” reads the letter.
The NOC used to import 300-350 tankers of petrol/diesel and 35-40 bullets of liquefied petroleum gas on a normal day.
The business losses due to the current embargo have affected the NOC’s move to clear its debt.
In the past one year since the adoption of an automated pricing mechanism, the NOC has reduced its loans to Rs16.64 billion from over Rs35 billion. It owes Rs4 billion to the Citizen Investment Trust and the remaining Rs12.64 billion to the government.Follow @gorkhapost
Govt, transport entrepreneurs strike eight-point agreement
KATHMANDU — The government and agitating transport entrepreneurs have stroked an eight-point agreement on Friday.
The government has also agreed to amend provisions of the new Criminal Code as demanded by the transport entrepreneurs.
With the agreement, the agitating transport entrepreneurs have called off their protest programs after the government agreed to address their demands.
Tanker transport entrepreneurs had been staging protest since Tuesday against provisions in the penal code, including 10-year imprisonment for accidents and life imprisonment for causing death.
Following the agreement, the ongoing fuel supply crisis is now expected to end.
The entire country has been facing short of fuel due to the disruption of fuel supply after tanker drivers went on a strike to press for their demands.
Earlier today, after nation wide fuel shortage, the Nepal Oil Corporation has decided to start rationing of fuel citing depleting stock due to inadequate supply of petroleum products.
According to the NOC, a two-wheeler will be allowed to purchase 5 liters of petrol and light four-wheeler vehicle will be allowed to purchase 15 liters of petrol.
Likwise, the state oil monopoly has urged the petrol pumps to sell maximum 50 liters diesel to short-route vehicles and maximum 100 liters to long-route vehicles.
The NOC has also urged the fuel stations to prioritise ambulances, school buses and government vehicles while selling the fuel.Follow @gorkhapost