No reduction in petroleum supply: India

The Indian Embassy has refuted the news reports that the shortage of petroleum products in the Kathmandu Valley is because of the cuts in supply by the Indian Oil Corporation (IOC) after Nepal Oil Corporation (NOC) failed to clear its outstanding dues.

A press release issued by the Indian Embassy said, “IOC has supplied 48281 MTs of petroleum products between 1st and 21st December 2006, whereas it had supplied 37758 MT between 1st and 21st November 2006. This is a month-on-month increase of more than 27%,” adding, “NOC had indicated to IOC that they would lift products worth INR 1,650,000,000 during December 2006. Till December 21, NOC had received supplies worth INR 1,226,300,000, indicating that 74% of planned supplies in money terms had been received in 70% of the time. This is no reduction of supplies, it is an increase.”

Earlier, there had been reports in the media that Indian Oil Corporation (IOC) has drastically reduced fuel supplies to Nepal- by upto 60%, to “tighten the noose” for payment of dues owed by Nepal Oil Corporation (NOC).

Stating that NOC's outstanding dues to IOC, by NOC's own admission, is around NRs 15 billion, and the NOC is not paying any interest on the outstanding dues, the statement further said, “Despite lack of any assurance on settlement of outstanding dues from NOC and Government of Nepal, and continuing uncertainty about future payments, IOC continues to ensure smooth supply of petroleum products to Nepal.”

“It is also pertinent to remember that even though India itself is a large importer of oil and petroleum products, it ensures these supplies for Nepal as a friendly neighbour committed to development, democracy and peace in Nepal,” the statement further said.

The Embassy regretted "one-sided and false story" published by some media about IOC reducing supplies to put pressure for payment of debts owed by NOC, without contacting the Embassy or IOC officials to ascertain the correct position.

“Such one-sided and incorrect stories can lead to panic in the economy, besides needlessly damaging perceptions about India-Nepal relations,” the statement added. nepalnews.com pb Dec 24 06