Fuel Overview
Nepal Oil Corporation Limited (NOC) established in 1970 by the Government of Nepal under the "Company Act, 2021 (1964), is a state-owned trading enterprise of Nepal that imports, stores and distributes various petroleum products in the country. In Nepal, no private or other companies are allowed to import Petrol and Diesel other than NOC. Being a landlocked country, all fuel products in Nepal are imported via India under the special agreement with Indian Oil Corporation (IOC). NOC, headquartered in Kathmandu, has over the years expanded and now has seven Provincial offices in each province of Nepal. Three branch offices, two fuel depots, One Petrol Pump, and Ten aviation fuel depots, with total existing storage capacity of 68,427 kilolitres (kl), which is assessed to be enough for 20 days based on national sales data.
NOC distributes its petroleum products to various government affiliated and NOC approved privately owned companies to be distributed to consumers. Currently, NOC is working towards developing storage facilities for petroleum products to meet the demand of at least 30 days. All aviation fuel (Jet A-1) is distributed and sold directly by NOC through eight Aviation Fuel Depots to adhere to stringent quality control measures.
The current storage capacities of the Fuel depots of the country are as follows:
Storage Capacity (kiloliters) of Nepal Oil Corporation Ltd. |
|||||
---|---|---|---|---|---|
Location |
Petrol |
Diesel |
Kerosene |
Jet A1 |
Total |
Kathmandu |
6070 |
8400 |
760 |
7132 |
22362 |
Amlekhgunj |
3430 |
19840 |
760 |
0 |
24030 |
Biratnagar |
560 |
7110 |
710 |
302 |
8682 |
Janakpur |
30 |
140 |
70 |
92 |
332 |
Bhairahawa |
519 |
3040 |
140 |
494 |
4193 |
Pokhara |
1110 |
2280 |
0 |
157 |
3547 |
Nepalgunj |
210 |
2280 |
140 |
303 |
2933 |
Surkhet |
0 |
0 |
45 |
82 |
127 |
Dhangadhi |
115 |
1590 |
70 |
63 |
1838 |
Dipayal |
0 |
45 |
0 |
0 |
45 |
Bhadrapur |
0 |
0 |
0 |
83 |
83 |
Manthali |
0 |
0 |
0 |
27 |
27 |
Bhairahawa |
32 |
48 |
0 |
0 |
80 |
Nepalgunj |
32 |
75 |
0 |
0 |
107 |
Dang |
0 |
0 |
0 |
41 |
41 |
Total |
12108 |
44848 |
2695 |
8776 |
68427 |
Source: Storage Facilities (noc.org.np)
Links to the authorized dealers and retailers Details:
For more information on government and fuel provider contact details, please see the following links: 4.1 Government Contact List and 4.7 Fuel Providers Contact List.
Fuel Pricing
NOC has implemented Automatic Petroleum Pricing Mechanism (APPM) since 29th September 2014. To cushion consumers against an oil price shock, the government has seeded a Price Stabilisation Fund with NRs500m (approx. USD 3.7m). If petroleum product prices rise by more than 2%, the NOC will draw on the fund to moderate the increases passed on to consumers; if prices decrease by more than 2%, the NOC will make deposits into the fund to build it up against future negative shocks.
Fuel Prices per Litre as of February 12, 2024 |
||
---|---|---|
Petrol (Motor Spirit) |
NPR 170.00 |
USD 1.27 |
Diesel (High-Speed Diesel) |
NPR 158.00 |
USD 1.18 |
Kerosene (SKO) |
NPR 158.00 |
USD 1.18 |
Jet A-1 |
NPR 136 per Litre (Duty Paid) USD 1035.00 per KL |
USD 1.02
|
LP Gas |
1910.00 per cylinder |
USD 14.38 |
|
*Price applicable within 15KM of NOC depot/Sales Office |
*Price applicable within 15KM of NOC depot/Sales Office |
*Selling Price of Petroleum Products in Kathmandu Valley (Inclusive VAT) as of February 12, 2024 Exchange rate 1 USD: 132.814 NPR as of February 12, 2024
Seasonal Variations
Fuel worth NPR 353 billion (USD 2.65 billion approx.) was imported in the fiscal year 2022/23. Import of fuel has gradually increased for the last couple of years due to the increase in the consumption of fuel, as per a spokesman NOC. During monsoon, because of reasons like bad road conditions due to continuous rain and due to lessened developmental activities, the import of fuel is lower.
Seasonal Variations |
|
---|---|
Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?) |
Yes, government agencies, the Nepali Army and industries get the bulk amount of fuel directly from the NOC as agreed. Embassies in Nepal also receive a bulk quantity. |
Is there a rationing system? |
No |
Is fuel to lower income / vulnerable groups subsidized? |
No |
Can the local industry expand fuel supply to meet humanitarian needs? |
No, since the NOC is the sole importer of the fuel, local industries do not have the authority to import fuel, but they do have the capacity to buy fuel from the NOC and set up facilities in strategic locations to make fuel accessible to remote areas. |
Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs? |
Yes, Humanitarian organizations can directly contract NOC for its fuel needs. Humanitarian agencies need to produce a document from the Ministry of Finance on tax (duty) exemption for the provision of tax-free fuel. |
Fuel Transportation
The Motihari-Amlekhgunj pipeline is 69 kilometre (42.9 mi) long oil pipeline from Motihari, India to Amlekhgunj Depot in Parsa, Nepal. This pipeline makes the transportation of oil across the border from India easier, safer and faster to Nepal. It is the first trans-national pipeline in the Indian sub-continent operated by Indian Oil Corporation Limited. Currently, the pipeline is used for the import of diesel.
The pipeline was jointly inaugurated by Prime ministers of India and Nepal on 10 September 2019.
The products are transported from IOC refineries, terminals, and depots to the corresponding NOC depots and retail dealers by tank trucks. There is a total of 494 transporters across the country and 1,893 tank trucks are available.
Office |
Indian Oil Corporation Source |
---|---|
Biratnagar |
Barauni Refinery |
Birgunj |
Raxaul Depot |
Bhairahawa |
Betalpur Depot, Mugalsarai Terminal |
Nepalgunj |
Allahabad Terminal, Gonda Depot |
Dhangadi |
Banthara Depot |
NOC does not have its own transportation provision. A bilateral contract with the transporter is the basis for all the product delivery orders to be sent out to Indian Oil Corporation (IOC) depots carried along by each oil tanker. From the IOC’s depots with respect to the capacity of the tankers, either 12 KL or 20 KL fuel is carried back to the respective depots after necessary clearance procedure at the customs.
However, in several instances, fuel transporters are often the cause of supply bottlenecks. Fuel tankers, which are mainly private owned, are the only transporters of fuel in the country, hence, fuel tanker association strikes/protests often lead to halt in the supply of fuel resulting in a fuel crisis.
Link: Tank Truck detail of all provinces
Standards, Quality, and Testing
With the help of IOC, NOC has been able to train employees in the field of quality and pollution control, stock loss control, fire and safety precautions during operations, engineering, as well as in the detection, control and countermeasures against adulteration and required laboratory test procedures and methods.
A Quality & Pollution Control Department at Babar Mahal, Kathmandu has been set up to constantly monitor fuel standards. The central laboratory is equipped with necessary facilities for testing of quality standards of petroleum products. Laboratory testing is regularly carried out and quality norms are strictly enforced. NOC also frequently arranges for its inspection team to check adulteration and maintain the standard of petroleum products available in the market.
Industry Control Measures |
|
---|---|
Do tanks have adequate protection against water mixing with the fuel? |
Yes, EPOXY coating on the inner walls of tanks along with a secure locking mechanism ensures against water mixing. |
Are there filters in the system which monitor where fuel is loaded into aircraft? |
Yes, zero tolerance in ATF and three levels of filtration is practiced ensuring that the impurities at the 1micron level. By the time Aircraft filters, the level of impurities reduces to 0.5 micron. |
Is there adequate epoxy coating of tanks on trucks? |
Yes, EPOXY coating on the inner walls of tanks to prevent rust and dust. EP coat is required be changed every 3 years although every year its adequacy in the tank is ensured. |
Is there a presence of suitable firefighting equipment? |
2 bags of 10 kg each of dry chemical powder is carried by the tanks at all times. Tankers are designed to exhaust fumes from the front of the vehicle and not the rear. |
Standards Authority |
|
---|---|
Is there a national or regional standards authority? |
NOC is completely reliant upon the standards imposed by IOCs since all of Nepal’s Oil import is from IOC depots in UP, Bihar and West Bengal. |
If yes, please identify the appropriate national and/or regional authority. |
National: NOC Regional: IOC |
If yes, are the standards adequate/properly enforced? |
Yes |
Testing Laboratories |
|
---|---|
Are there national testing laboratories? |
Yes, NOC’s central Lab test on Micro Biological Contamination test, Corrosion Test on Silver and Copper, Millipore Test. |
Fuel Quality Testing Laboratory |
|
---|---|
Company |
NOC |
Name |
Quality & Pollution Control Department |
Address |
PO Box 1140, Babarmahal, Kathmandu |
Telephone and Fax |
Telephone: 977-1- 4262780 4263481 4263482 4263485 Fax: 977-1-4263499
|
Contact |
|
Standards Used |
EURO IV of Fuel Standard |
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
Sources:
1. Nepal introduces a new oil pricing mechanism, new oil pricing mechanism