KATHMANDU: A total of 16 private companies have received licences to import fuel in the last one month, but only one has begun bringing it in, said the Department of Commerce and Supply Management (DoCSM). The first oil import licence was issued on November 6.
“We started distributing permits after the government removed restrictions on private companies importing fuel as per a notice published in the Nepal Gazette on October 19,” said DoCSM Director General Shambhu Koirala.
The government decided to allow private companies to import and sell fuel in the domestic market in a bid to diversify sources as the regular supply from India has been disrupted for two and a half months since the trade embargo. According to Koirala, the licences provided to these companies are valid for only six months.
Among the 16 companies, 11 are based in Kathmandu. They are Bala Trade Link, Tayal International, Otex International Nepal, Aryan Petrochemicals Trading, Blue Lotus Enterprises, Down Town Investment, MIG Holding, Orange Trade and Events, Progiochem Industries, Petrolimex Nepal and Banquet Queen Investment.
The others are Koshi Petrochemicals and Fujima Oil Company from Morang, Bhagawati Traders and Neprash International Company from Lalitpur, and Nepa Petroleum Trade Links from Sunsari.
Petrolimex Nepal has been allowed to import aviation fuel while Blue Lotus Enterprises has received a licence to import cooking gas. According to the department, the rest have been given permission to import petrol and diesel.
Director Pradeep Subedi, who looks after import and export at the DoCSM, said the firms had been issued import licences after checking their registration and tax clearance. “In addition, the importation of petroleum products should be stated clearly in their article of association.”
Only Petrolimex among the private firms has started delivering fuel in the domestic market as pledged. It has received a contract from state-owned Nepal Oil Corporation (NOC) for the supply of 3,000 kilolitres of aviation fuel, and it began making shipments on Friday.
Deepak Pokharel, an officer at the department, said most of the companies that obtained import licences had also submitted expressions of interest to NOC. The corporation has provided no-objection letters to all the 22 applicants. A number of companies said they had not been able to import fuel because banks had been reluctant to open letters of credit. “As per the prospective importers, banks have been hesitating to open letters of credit as they cannot be sure that shipments will be made,” he said.
Piles of Nepal-bound cargo have been stranded in India since the trade embargo, and the oil could get stuck too. Pokharel said that companies that had pledged to supply petroleum products from third countries were having second thoughts fearing possible obstructions to transportation through Indian territory.
If these companies bring fuel as proposed, they will have to get the product tested by the Nepal Bureau of Standards and Metrology before it can be sold.
The government has declared that the imported fuel should meet Euro III standard at least. The fuel brought by private firms could cost more than that supplied by NOC.
