KATHMANDU: Nepal Oil Corporation (NOC) has said it will start importing Euro IV standard fuel from April 2017. NOC’s sole supplier Indian Oil Corporation (IOC) has agreed to supply the high-grade petrol and diesel after the renewal of an agreement slated for March 2017, according to the state-owned oil monopoly, which currently imports petroleum products of Euro III standard. “At a bilateral meeting held in Kathmandu on last Friday, IOC has agreed to supply petroleum products of Euro IV standard,” said NOC Spokesperson Bhanubhakta Khanal.
Euro IV standard fuel is considered environmentally-friendly as it emits low sulphur, hydrocarbons and carbon monoxide, among other air pollutants. “However, the degree of emission of these by-products also depends on the condition of vehicles,” Khanal said. The fuel also enhances efficiency of vehicles, resulting in higher mileage. Nepal imported the high-grade fuel from China during the blockade imposed by India. However, consumers may have to pay extra for the higher-specification fuel. “As the quality improves, the cost might increase nominally,” he said.
At the meeting, IOC also agreed to form a joint committee to monitor the quality and quantity of fuel being supplied to Nepal. Petroleum dealers have complained that they have sometimes been supplied with lower quantity of fuel than they actually ordered, besides raising fuel quality issues. However, most of the time, transporters and petroleum dealers are blamed for the anomalies. Khanal said the joint monitoring team would be mandated to check even the depots of IOC. “The committee can recommend penalising those involved in anomalies,” said Khanal, adding a meeting to be held in March would devise a modality of the proposed committee.
During last Friday’s meeting, IOC also appeared flexible over NOC’s demand to lower surcharges that India imposes on petroleum products supplied to Nepal. According to NOC, the Indian oil supplier had in the past revised the rate in line with the growing volume of imports by Nepal. At present, IOC charges up to 2.5 percent of the international price as surcharge, including profit and other administrative expenses, to Nepal. “However, the new rate is yet to be finalised,” he said.
