KATHMANDU: Nepal Oil Corporation (NOC) has amended the Petroleum Products Retailers Regulations to impose fines of up to Rs 1 million on fuel stations that suspend operations without valid reasons.
Under the revised provisions, fuel stations found creating artificial shortages by keeping their nozzles dry despite having no justified reason may also face suspension of petrol and diesel supplies from NOC depots for up to 15 days.
The amendment comes after petroleum dealers, anticipating a possible reduction in fuel prices, did not lift fuel from NOC depots on Tuesday, resulting in disruptions to fuel supply across the country on Wednesday.
After finding no clear legal basis to take action against dealers responsible for disrupting the supply of essential petroleum products, Minister for Industry, Commerce and Supplies Gauri Kumari Yadav on Wednesday directed NOC to introduce a legal mechanism to address such incidents.
Following the minister’s directive, a meeting of NOC’s Board of Directors on Wednesday evening amended Clause 29(G)(10) of the Petroleum Products Retailers Regulations, 2075, adding a provision that prohibits retailers from keeping fuel nozzles dry and creating a situation where petroleum products are unavailable.
Under the revised regulation, a first violation will result in a fine of Rs 300,000 and suspension of fuel supplies from NOC depots for five days. A second violation will carry a fine of Rs 600,000 and a 10-day supply suspension. A third violation will result in a fine of Rs 1 million and suspension of fuel supplies for 15 days.
NOC said the amendment ensures legal action can now be taken against any fuel station found creating an artificial fuel shortage by shutting down operations without a valid reason.
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