Laxman Kafle
Consumption of petroleum products has increased significantly with the expansion in election activities across the country.
According to Binitmani Upadhyay, spokesperson for Nepal Oil Corporation (NOC), consumption of diesel and petrol has gone up by about 40 per cent for the last one week due to the increasing election campaigns of the political parties.
All the political parties and candidates are busy canvassing for the local level election which is being held on May 13 this year.
"Demand for petroleum products has been rising for the last one week which is natural as large numbers of vehicles, including motorcycles, are being used in election campaigns across the country," he told The Rising Nepal.
Under normal circumstances, about 5,500 kiloliters of diesel is consumed on a daily basis in the country, but now daily consumption of fuel has increased to about 7,500 kiloliters.
Under normal circumstances, about 5,500 kiloliters of diesel is consumed on a daily basis in the country, but now daily consumption of fuel has increased to about 7,500 kiloliters.
Similarly, the demand for petrol, which is 2,500 kiloliters daily in a normal period, has also reached 3,500 kiloliters. He said that the demand for petroleum products would be high for at least a week and it would return to normal after holding the victory celebrations.
Upadhyay said that the Corporation, which has been incurring huge losses in the sale and distribution of petroleum products, would face additional financial burden after the rise in fuel consumption.
The government has already directed the government offices to reduce fuel consumption by 20 per cent and decided to give public holiday on Sunday to reduce the consumption of petroleum products.
The government had taken the decision citing that growing import of petroleum products has hit foreign currency reserves.
NOC increasing fuel stock
The NOC has started stocking petroleum products in all depots for local elections. The Corporation has stated that fuel will be in 'stock' to prevent shortage of petroleum products for during the election.
"Considering present surge in fuel consumption and the provision to seal the border for 72 hours for election, we are stocking fuel in all the depots to prevent the possible shortage of fuel in the market,” said Upadhyay
Petroleum products are currently being imported from IOC every day. It is also coming from Raxaul-Amalekhgunj pipeline.
“Many vehicles are used during elections. If there is a shortage of fuel at that time, there may arise more problems. Due to this, pre-preparation has already started,” said Upadhyay. "As the border will be closed for 72 hours before and during the election, the stock has started to increase from last week."
"The Corporation now has 80 per cent stock of petroleum products. At present, the Corporation has 6,500 kiloliters of petrol in its stock and 35,000 kiloliters of diesel,” he said. He said that there would not be a problem in the supply of petrol and diesel in the market as there will be sufficient stock to meet demand for a few days.
He, however, said that diesel will be imported regularly from the pipeline even though the border is closed. He said that the problem of gas in the market has been solved as about 2,000 tonnes of gas is being imported daily.
NOC requests government to manage funds
He said that the NOC has been asking the government to arrange funds to pay installments to IOC for the import of petroleum products.
"We have to pay around Rs. 25 billion to IOC now for the payment of imported petroleum products. But we have not collected that amount from the sale of fuel as the NOC is selling petroleum products bearing losses," he said.
He said that the government should arrange insufficient amount to pay the installment at the earliest.
He said that the Corporation has started informing the general public about the fortnightly losses and prices of fuel through digital display at the central office of the Corporation, Teku.
