The state oil monopoly has only 20 per cent of fuel storage compared to its storage facility, managing director Suresh Kumar Agrawal said.

The corporation has been failing to keep its storage facility full due to resource crunch, according to him.

Nepal Oil Corporation has a storage capacity of 71,558 m3, he said, adding that the present storage facility can meet the market demand of 15.

Even though the government has constantly to utilise full capacity of Nepal Oil Corporation storage facilities, the corporation has initiated the expansion project of storage. “Nepal Oil Corporation has started the design process of its Thankot-based depot,” Agrawal informed.

Nepal Oil Corporation has requested the Indian Oil Corporation to send expert team to study the feasibility and other technical aspects of new oil storage facility in Thankot, he said. “However, IOC is yet to send expert team.”

The state oil monopoly has a total of ten depot in different locations. Its largest storage facility is Amlekhgunj-based depot which has the capacity to store 23,640 m3 fuel followed by Thankot depot with 22,940 m3 storage capacity.

Besides, NOC has its storage facilities in Biratnagar, janakpur, Bhairawa, Pokhara, Nepalgunj, Surkhet, Dhangadi and Dipayal.

“But the current scenario is not encouraging,” Agrawal opined. The corporation has the loan burden of Rs 18.42 billion and facing Rs 19.84 billion accumulative loss. It pays Rs 91.9 million on interest of loan every month.

Similarly, Nepal Oil Corporation has been incurring Rs 687.1 million monthly loss according to Indian Oil Corporation’’s October 16 price list. “The corporation cannot fill its storage facility with full capacity since it has not resources to import fuel to keep storage,” according to Agrawal.