KATHMANDU, MAR 31 - Nepal Oil Corporation (NOC), the sole importer and dealer of petroleum products in Nepal, has said as it failed to pay the Indian Oil Corporation regularly, the latter curtailed the supply of petroleum products by 25 percent. It finally resulted in shortage of petroleum in Nepali market.
The NOC had to pay Rs 4 billion till today, March 31, but failed, thereby adding woes to customers.
Although the government was already informed about the problem, the Finance Ministry has not released the grants, said NOC Spokesperson Mukunda Ghimire adding, "We've committed to paying the IOC as early as possible."
The NOC, for a day, is receiving only 800 kilo litre of petroleum products for past few days while the regular import is Rs 2,300 litre a day.
According to Spokesperson Ghimire, NOC was put pressure also because it is the final month of the fiscal year in India. However, the problem would not last longer, he added.