Kathmandu, January 30
In past 12 years, the per-year demand for petroleum products in Nepal increased by 1.17 billion litre. However, the storage capacity of Nepal Oil Corporation, the sole state-government distributor of fuels in the country, is same over years.
During the 2015/16 border blockade, the country reeled under an acute shortage of petroleum products. Members of the public as well as stakeholders widely discussed the need of expanding the storage facility so that the country could store fuel it needs for next few months.
The blockade ended after around six months. It was expected that the government would pay attention to adding up the storage capacity, but nothing happened in these two years post-blockade.
The Corporation says the total demand for diesel, petrol, kerosene and aviation fuel was 666,290 kilolitre per year. The demand has now swollen upto 1.883 million kilolitre. In overall, the per-year consumption has risen by 1.17 billion litre.
Following the blockade, the government directed the Corporation to expand its storage capacity so that it can suffice the demand for 90 days. The Corporation too began the procedure to build petroleum storage facilities in various places of the country. However, all preparations have been halted after the Corporation leadership has been accused of embezzlement in the purchase of land.
The Commission for the Investigation of Abuse of Authority is carrying out a probe into reports of irregularities.
On the other hand, the country also signed an agreement with China to import petroleum products from the northern neighbour. The agreement, however, is yet to be implemented.
Besides, China has also proposed that it will support establishing storage facilities. However, the government has not made any preparation to implement the proposal.
It seems neither the government nor the Corporation are interested to find a long-term solution to other likely events of fuel crisis in the future.
