Before I worked with Nepal Oil Corporation Limited (NOC), I
used to wonder about so many things whenever I spotted tank trucks and the tall
vertical storage tanks in depots. I used to wonder: What are these? How heavy
are those trucks? How does the entire system work? I used to hear reports about
mishandling and stealing of petroleum products. I used to wonder what those
huge storage tanks and fuel trucks were, how much they could carry, and how the
whole thing worked.
Fig:
TLF shed and vertical tank at Biratnagar Depot
Now, as an employee of NOC, my perspective
has completely changed. I have now a clear and better understanding about how
does the organization functions to ensure the undisturbed supply chain of
petroleum product throughout the country.
After insightful discussions with
Er. Abishek Kumar Thakur (Deputy Director, Engineering Project and IT
Department) and Er. Surendra Mahato (Manager, Engineering Project and IT
Department), I have prepared the following article. It gives a clear picture of
NOC’s key responsibilities and what the organization actually does to ensure
the regular and reliable supply of fuel throughout Nepal.
Nepal Oil Corporation Limited (NOC) is the only organization in Nepal responsible for supplying petroleum products like petrol, diesel, kerosene, and Liquefied petroleum gas (LPG) throughout the country. Fuel is considered an essential and emergency service, so NOC and its employees must be ready to work at any time-even during holidays or emergencies. Although it may seem like NOC's work is just about importing, storing, and delivering fuel, in reality, it is very challenging. The difficult geography of Nepal, long supply chain, and dependence on foreign suppliers make the task even harder.
To perform its duties, NOC has some key responsibilities, which are explained below.
Maintain Good Relations with Stakeholders:
NOC maintains strong relationships with: Government of Nepal, Government of India, Indian Oil Corporation, Transporters, Fuel Dealers and LPG Bottlers for the smooth and undisrupted supply of petroleum products.- Import Fuel from Indian Oil Corporation (IOC): NOC imports all fuel from IOC, India under a long-term agreement (currently a 5-year contract). It is a core part of NOC's business to handle this relationship.
- Make Fuel Available Across the Country: NOC ensure that petroleum products are available in all parts of Nepal, including remote hilly and mountainous areas, despite difficult roads and transport risks.
- Maintain Regular Supply Chain: One of the most important tasks of NOC is to keep the fuel supply chain running smoothly without shortages, even during crises or strikes. For this NOC stores a large amount of fuel in its depots across the country as a buffer stock.
- Transport Fuel Safely: Fuel is transported from India through tank trucks (TTs), which are operated by private parties. NOC ensure safe transport and maintain transporters in good terms as far as possible.
- Operate Storage Depots and Provincial Offices: NOC has offices and depots in all seven provinces, which help manage fuel import, storage and distribution in different regions. These are supervised by the Provincial Office and the Supply and Distribution Department of Head Office.
- Handling of Petroleum Products: When the petroleum products arrive at the depots, the operation in-charge and their personnel play a significant role in their effective handling. This involves their responsibility to minimize losses, maintain quality, and store them safely. Any mishandling at this stage can lead to substantial financial loss and significant safety hazards.
- Timely Payment to IOC: Make payments to Indian Oil Corporation on time for uninterrupted supply, Adopt long-term financial practices to enable long-term operation and growth.
- Support Petrol Pumps and Dealers: NOC delivers fuel after storing it in depots to petrol pumps. NOC maintains cordial relation with fuel dealers to make sure the fuel reaches the public on time.
- Pricing of Fuel: Every 15 days, Nepal updates its fuel pricing, a practice that frequently draws public criticism. However, because pricing is mostly determined by changes in the international oil market, the Nepal Oil Corporation (NOC) has little control over it. Nevertheless, as prices rise, NOC usually faces public pressure. In these circumstances, NOC's board makes strategic decision to maintain the organization's viability while lowering the public's financial burden.
- Coordinate with Government Agencies: Facilitate smooth functioning through active communication among board members representing various government ministries, especially: Ministry of Industry, Commerce, and Supplies, Ministry of Finance, Department of Commerce and Consumer Protection, Nepal Bureau of Standards and Metrology.
- Transparency in Decision-Making: Since NOC's Board includes representatives from various ministries, NOC make sure to have clear and quick communication to avoid delays in decision-making.
- Seek Government Support in Difficult Times: Maintain regular contact with the Government of Nepal and request policy support and subsidies during times of financial loss or crisis.
- Ensure operational readiness during political instability: After experience of boarder blockade of 2015, NOC gained a lesson and in most cases NOC is ready to function even during political transition, strikes, or other disruptions, as any delay can affect the country's fuel supply.
Conclusion
NOC ensures continuous supply of fuel throughout the nation and forms the backbone of major services. While much of its work occurs behind the scenes, they are essential in day-to-day life, emergency services, transport, and economic process. Despite ongoing hardship, NOC is unwavering in its commitment to serving the nation with commitment and dedication.