KATHMANDU: Nepal Oil Corporation Limited has implemented a provision to take strict action against entrepreneurs who create a fuel shortage by closing petrol pumps without a valid reason.

By amending the Petroleum Sellers Regulations, 2018, the Corporation has added provisions where a fine of up to Rs 1 million can be imposed and fuel supply can be suspended for up to 15 days for such offenses.

Recently, fuel supply in various parts of the country was affected when petroleum entrepreneurs refrained from lifting fuel from the Corporation’s depots in anticipation of a price drop.

Following this, the Minister for Industry, Commerce, and Supplies, Gauri Kumari Yadav, directed the enforcement of stricter legal measures.

Following the Minister’s directive, a meeting of the Board of Directors of the Nepal Oil Corporation added a provision to Section 29(d)(1) of the regulations stating that ‘sellers shall not create a situation where petroleum products are unavailable by keeping the nozzles dry.’

According to the amended provision, a first-time offense will result in a fine of Rs 300,000 and a five-day suspension of fuel supply from the Corporation’s depot.

If the offense is repeated a second time, a fine of Rs 600,000 along with a 10-day supply suspension will be imposed, while a third-time offense carries a penalty of a Rs 1 million fine and a 15-day suspension of fuel supply.

According to the Corporation, the new arrangement is expected to curb the trend of creating artificial shortages by closing petrol pumps without valid reasons, and help ensure a regular supply of fuel to consumers.