Nepal Oil Corporation’s storage was pitiful throughout last year, said acting director at the corporation Sushil Bhattarai, adding that NOC succeeded in adding 10,000 kilolitres fuel in its storage facilities due to the reduced price of petroleum products.

However, 20,000 kl is not an encouraging volume. Nepal Oil Corporation has storage capacity of 71,558 kl. The corporation could have increased its storage volume if it was serious about the issue, a source at the corporation said. 

The corporation’s management did not take an assertive approach to increase its storage volume when prices are down, the source added. 

The state oil monopoly’s existing storage facilities are only enough for 15 days of national sales based on the projected sales for 2009, according to the corporation.

Nepal Oil Corporation has 10 depots across the country. The Amlekhgunj-based depot is its largest storage facility that has a capacity to store 23,640 kilolitres of petroleum products followed by Thankot depot which has a capacity of 22,940 kl. 

Besides, Nepal Oil Corporation has storage facilities in other cities: Kathmandu, Biratnagar, Janakpur, Bhairahawa, Pokhara, Nepalgunj, Surkhet, Dhangadi and Dipayal. 

Meanwhile, Nepal Oil Corporation has said that it has been waiting for a response from Indian Oil Corporation (IOC) to start business of bitumen, lube oils, furnace oil and light diesel oil. 

Nepal Oil Corporation has already written to the only fuel supplier to the country for the supply of those products, said acting director of NOC Bhattarai, adding that Nepal Oil Corporation has asked Indian Oil Corporation to clarify the payment modality, the appropriate depot of IOC to import such products, and the price structure of all the products. 

It is the right time to start the business since the corporation is making profits at present, according to him.