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CIAA begins probe into fuel leakage

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KATHMANDU, Oct 9: The Commission for the Investigation of Abuse of Authority (CIAA) has initiated a probe into the huge loss reportedly suffered by Nepal Oil Corporation (NOC) while importing fuel from Barauni of India.   



The anti-graft body has expressed concerns over the loss of more than Rs 218.2 million per year incurred by the state-owned petroleum monopolist due to faulty calibration, high temperature and higher cost of transportation on Barauni-Amlekhgunj route compared to other alternative routes.[break]



“We have initiated probe into the huge loss suffered by NOC while delivering the fuel via Barauni when we have alternative routes that are more profitable,” said a highly placed source at the CIAA. The cost of transporting the fuel from Barauni to Amlekhagunj is higher by at least 20,000 per tanker. On this basis, the state-owned petroleum monopolist has been suffering a loss to the tune of Rs 1.13 per liter when compared with the same amount of fuel imported from other routes.



NOC has been importing fuel from Baruni and Raxual of India to Amlekhagunj.  Barauni route accounts for over 80 percent of the total fuel imports.

 

NOC employees have however objected to NOC management for rolling back its previous decision to stop importing fuel through most costly Barauni routes. NOC´s move follows pressure from tanker operators.   



NOC had decided to close fuel import from Barauni after its high-level technical probe team confirmed wrong calibration in tankers.



An internal investigation by employees´ team earlier found that NOC was suffering a loss of 250 litter of fuel per tanker along the Barauni route due to faulty calibration, and another 150 liter per tanker due to higher temperature.  



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