NOC mulling using Nepali companies to transport LPG

NOC mulling using Nepali companies to transport LPG

Nepal Oil Corporation (NOC) has been mulling hiring Nepali companies to transport liquefied petroleum gas (LPG) from gas depots in India to bottling plants here.

The shipments are presently being handled by Indian transporters.

According to NOC, it has started homework to urge Nepali companies to acquire their own bullets to transport the vital cooking fuel. Currently, 523 bullets belonging to seven Indian shipping companies are being used to transport LPG from Indian Oil Corporation’s (IOC) depots in Barauni, Haldiya and Mathura.

“They have been taking home more than Rs3 billion in freight charges annually,” said NOC Spokesperson Mukunda Ghimire.

Nepali LPG bottling companies have to wait for their turn to ship LPG through the Indian transporting companies.

Sometimes, they are said to have to wait for days. During the recent shortages too, many small companies were reported to have been unable to import LPG due to the non-availability of bullets with the Indian transporters.

Ghimire said that the operation of bullets by domestic companies might help reduce the problems that the small companies have been facing. “If Nepali transporters have their own bullets, it could also prevent money from going outside the country,” he said.

According to him, NOC has been considering strongly urging bottling companies to acquire bullets. The estimated cost of a bullet is Rs7 million.

Source: eKantipur