Many locals and transport entrepreneurs said they have still been purchasing fuel from the black market. They also accused the Nepal Oil Corporation (NOC) and fuel traders of encouraging smuggling by creating artificial shortage of fuel.
Although District Administration Office (DAO), Jhapa says that it has prohibited people from bringing fuel in jerry cans from Panitanki across the border, Indian vehicles are being used for fuel smuggling, according to locals.
“A liter of diesel costs Rs 76, but we have to pay Rs 110,” Bishnu Kumar Shrestha, vice-chairperson of Mechi Bus Entrepreneurs' Association, said. “This is happening due to neglect by the government.”
Despite frequent calls by stakeholders to crack down on fuel black market, the government has not been doing anything, complained Shrestha.
According to the Mechi Petroleum Dealers Association, 180 kiloliters of petroleum products are imported to Nepal from India through Kakarbhitta checkpoint per day. But Jhapa district, which consumes around 20 kiloliters of fuel per day is still facing shortage.
Earlier, the DAO and transport entrepreneurs in the district had reached an agreement to provide 12,000 liters of fuel per day to the buses operating during the night. The agreement has not been implemented yet, according to Shrestha.
Meanwhile, the DAO has admitted fuel shortage in the district and said most of the fuel goes to the capital. “As the petroleum products required for Mechi zone are sent to Kathmandu, this has caused shortage in the eastern region,” Jhapa's Chief District Officer Madan Bhujel told Republica.
According to CDO Bhujel, they have been supplying only half of the demand in the region. “We are confident that the shortage will end soon once the distribution returns to normal,” he said.
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