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Nepal And Indian Oil Corporations Reached A Deal
By KTM Metro Report
April 28, 2012: Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) have yesterday signed off a deal on smooth supplying petroleum products to Nepal for the next five years, ‘The Rising Nepal’ of today writes. Acting Managing Director of NOC Suresh Kumar Agrawal, and General Manager (supplies) of IOC R. Karandikar signed off the agreement on behalf of their respective organizations.
Following the agreement, the IOC will set the prices of Nepal-bound petroleum products by adding the cost price in fetching them from Arab Gulf to the IOC depot in India to the basic spot prices as per the daily listing by Platts and Argus Organization. In addition, the IOC has done away with the 2.5 per cent as Price Adjustment Factor (PAF) that includes refinery and transportation charges among other technical losses under IOC’s current price formula. This alone will saves Rs. 2 billion annually for the NOC.
Following the deal, NOC can receive petroleum products from the Mumbai Port for the western regions of Nepal reducing the cost of transport. So far, the IOC has been supplying petroleum products to the NOC from the Haldiya Port.
Deputy Director of NOC Sushil Bhattarai said that the new deal signed between NOC and IOC was good for Nepal, as it would ease the fuel supply.
