KATHMANDU: Nepal Oil Corporation (NOC) has amended its Petroleum Products Dealers Regulations to take stricter action against fuel stations that disrupt the supply of essential petroleum products.
Under the revised regulation, fuel stations that close without a valid reason or deliberately create a shortage by allowing their fuel nozzles to run dry will face fines ranging from Rs 300,000 to Rs 1 million.
The amendment was approved by the NOC Board of Directors on Wednesday. A new provision has been added to the Petroleum Products Dealers Regulations, 2075, prohibiting dealers from creating a situation where petroleum products become unavailable due to dry fuel nozzles.
For a first violation, a fuel station will face a fine of Rs 300,000 and its fuel supply from NOC depots will be suspended for five days. A second violation will result in a Rs 600,000 fine and a 10-day suspension of fuel supply. For a third violation, the dealer will be fined Rs 1 million and barred from receiving fuel supplies from NOC depots for 15 days.
The amendment comes after several private fuel stations remained closed on Wednesday. Many dealers had reportedly not lifted fuel from NOC depots on Tuesday, expecting a price reduction. The closures disrupted fuel supply in several parts of the country and caused inconvenience to consumers.
Following the incident, Minister for Industry, Commerce and Supplies Gauri Kumari Yadav directed NOC to introduce a legal mechanism to take action against dealers disrupting the supply of essential petroleum products. The NOC Board subsequently approved the amendment.
With the new regulation in place, fuel stations found closing without a valid reason in the future will be subject to legal action.
