Nepal Oil Corporation

Nepal Oil Corporation Limited (NOC - Nepal Oil Nigam) is a government-owned enterprise established on 26th Poush, 2027 B.S. (1943 AD). As the sole institution responsible for the import, transportation, storage, and sale of petroleum products in Nepal, NOC plays a critical role in ensuring the country's energy security. Headquartered in Teku, Kathmandu, the corporation is currently constructing a new central office at its previous location in Babarmahal.

Infrastructure and Operations:

NOC operates through a well-organized network of seven provincial offices, under which several fuel depots, aviation fuel depots, refueling stations, and branch offices are managed. The corporation boasts a storage capacity of 60,384 kiloliters of petroleum products and employs approximately 600 personnel.

Given the absence of domestic petroleum production, Nepal relies entirely on imports from India. NOC imports petrol, diesel, kerosene, and jet fuel from Indian depots in Barauni, Motihari, Siliguri, Betalpur, Gonda, Banthra, and Lucknow, while LP Gas is sourced from Barauni, Durgapur, Haldia, Mathura, and Paradip. These imported products are transported to Nepal using 1,863 tank trucks.

NOC has recently constructed the 131 km Motihari-Amlekhganj pipeline, facilitating diesel importation, reducing transportation costs, and ensuring the delivery of high-quality petroleum products to consumers. Plans are in place to extend this pipeline to Amlekhganj-Chitwan and Siliguri-Charali, with preliminary steps also underway for a gas pipeline between India and Nepal.

Distribution Network:

Petroleum products stored in NOC's depots are distributed to consumers through over 1,563 private dealers across the country. Additionally, LP Gas is supplied to private sector gas producers under the Product Delivery Order (PDO) system from Indian depots.

With the demand for petroleum products growing at an annual rate of 12-15 percent, NOC adjusts its pricing every 15 days based on the automatic pricing system aligned with rates from India.

Governance and Policy:

The corporation's high-level policy formation and decision-making are overseen by a board of directors, chaired by the Secretary of the Ministry of Industry, Commerce, and Supply. This governance structure ensures that NOC operates with transparency, efficiency, and in alignment with national interests.

Quality and Environmental Concerns:

Nepal Oil Nigam is committed to fuel conservation, safety, quality, and pollution control. The corporation has taken steps to educate stakeholders about fuel conservation and enforces stringent safety guidelines for both NOC depots and retail dealer storage facilities.

In response to global concerns about pollution and its impact on public health, particularly vehicular emissions, NOC has introduced unleaded petrol to reduce air pollution. The corporation collaborates with other government bodies and consumer forums to combat fuel adulteration and improve fuel quality.

NOC's partnership with the Indian Oil Corporation (IOC) has enhanced its capacity to train employees in quality and pollution control, stock loss control, fire and safety precautions, engineering matters, and the detection and prevention of adulteration. These efforts are complemented by rigorous laboratory testing to maintain consistent quality standards across all stages of operation and distribution.

Quality and Pollution Control Initiatives:

To uphold these standards, NOC has established a dedicated Quality & Pollution Control Department. The central laboratory is equipped with advanced facilities for testing petroleum product quality, ensuring that all products adhere to strict norms. An inspection team regularly checks for adulteration and maintains the quality of petroleum products available in the market.

Organizational Structures:

• Board of Directors

  • Chairman of the Board
  • Executive Committee Members (Government of Nepal representatives)

• Executive Director

  • Administrative Regulation and Management Department
  • Engineering, Procurement and Supply Department
  • Human Resources Management and Development Department
  • Finance Department
  • Quality Control Department
  • Law Department
  • Audit Department
  • Other Supporting Departments

• Provincial Offices

  • 1. Provincial Office, Biratnagar
    • Branch Offices: Itahari, Biratnagar, Rajbiraj
  • 2. Provincial Office, Janakpur
    • Branch Offices: Janakpur, Bhairahawa
  • 3. Provincial Office, Bhairahawa
    • Branch Offices: Bhairahawa, Butwal, Palpa
  • 4. Provincial Office, Hetauda
    • Branch Offices: Hetauda, Chitwan
  • 5. Provincial Office, Pokhara
    • Branch Offices: Pokhara, Mustang
  • 6. Provincial Office, Nepalgunj
    • Branch Offices: Nepalgunj, Dang
  • 7. Provincial Office, Dhangadhi
    • Branch Offices: Dhangadhi, Tikapur

Functions and Services:

NOC plays a crucial role in the importation, transportation, and distribution of petroleum products across Nepal. As the sole entity responsible for this task, NOC imports various products, including petrol, diesel, kerosene, jet fuel, and LPG, primarily from India. The corporation manages a complex logistics network that includes tank trucks and pipelines, such as the Motihari-Amlekhganj pipeline, to ensure efficient and reliable fuel transportation. This infrastructure is critical in reducing transportation costs and maintaining the quality of petroleum products delivered to consumers throughout Nepal.

In addition to its importation and distribution functions, Nepal Oil Nigam is responsible for maintaining an extensive network of storage facilities. With a storage capacity of over 60,000 kiloliters, the corporation ensures a steady supply of petroleum products to meet the country's growing demand. NOC also manages a network of over 1,563 private dealers and LP Gas distributors who play a vital role in delivering these products to end consumers. The corporation's pricing strategy involves a regular adjustment system based on international oil prices, ensuring that the pricing reflects current market conditions and remains competitive.

Furthermore, Nepal Oil Nigam is committed to maintaining the quality of petroleum products and minimizing environmental impacts. The corporation has established a dedicated Quality & Pollution Control Department, which oversees regular laboratory testing and inspections to prevent product adulteration and ensure compliance with stringent quality standards. NOC also promotes fuel conservation, safety, and pollution control through public education and awareness programs. Additionally, NOC provides specialized services to the aviation sector and offers comprehensive training programs for its employees, enhancing their skills in quality control, safety, and engineering practices.