Due to the lockdown, the daily turnover of Nepal Oil Corporation has decreased by Rs. 640 million. The daily turnover has been up to Rs 230 million till the third week of April. Last year, the monthly turnover was Rs 870 million, said Surendra Kumar Poudel, managing director of the corporation. He said, “Currently, revenue of Rs 4.28 billion is being lost.”
Demand for petroleum products has reached 33 percent in the last one week. By April 17, the demand was only 20 percent. The corporation has stated that the demand has increased after the vehicles started plying in the lockdown. Poudel said that the demand for petroleum products will not increase until the market returns to normal. Despite the low demand, petroleum products are fully stored. According to Poudel, 15,000 metric tons of gas is in stock. He said that there is enough gas in stock for 12 days even if the market is open after the lockdown. Storage is still high, Poudel said. He said that even bullets have stockpiled and even if the lockdown is extended, there will be no shortage.
After the flight is stopped, the aviation fuel is fully stored. Petroleum products are being imported regularly. The corporation has stated that it is being imported from all the ports with India. Even if the price of crude oil falls in the international market, there will be no price adjustment in Nepal for the time being. The corporation understands that consumers cannot take advantage of petroleum products by reducing prices when there is no demand in the market. On pricing, Poudel said, “The corporation is serious about price adjustment. The real lower or middle class is not relieved when prices are reduced. This class is under the influence of lockdown. Public transport is not running at all. ” He claims that the price adjustment of petroleum products will not have any meaning and effect when the market is stagnant. Demand for this specialty has grown significantly as a result of the Corona virus. Gulf oil-producing Gulf nations have cut production. Prices are falling but prices have not been adjusted in Nepal due to the lockdown, the corporation said.
The corporation has implemented automatic pricing system with Indian Oil Corporation. Accordingly, the price of petroleum products is determined every 15 days but it has not been determined after the start of lockdown.
The corporation had reduced the price of petrol, diesel and kerosene by Rs. It has to be reduced, but even if it is reduced by Rs Having a fare adjustment is not realized.